Sanae Takaichi, the Prime Minister of Japan, announced on Wednesday that the country will begin releasing part of its oil reserves from March 16 to ease supply pressures caused by disruptions in theStrait of Hormuzamid the ongoing West Asia conflict. According to a report by Reuters, Japan plans to release oil equivalent to 15 days of private-sector reserves along with about one month’s worth of government-held reserves.
The move follows escalating tensions after US-Israeli strikes on Iran on February 28 triggered an ongoing exchange of missiles and drones across the region. In response, Iran and its allies have blocked the Strait of Hormuz and warned that ships attempting to pass through the vital route could be targeted.
Tehran has also launched retaliatory strikes across the oil-rich Gulf, hitting targets in Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, effectively shutting down traffic through the narrow waterway.
So far, there are no indications that commercial vessels will soon resume sailing through the Strait of Hormuz, a critical global shipping route through which roughly one-fifth of the world’s oil supply normally passes. The disruption marks one of the most severe shocks to global energy supplies since the oil crises of the 1970s.
Japan’s decision also comes as the Group of Seven major economies move closer to tapping their strategic oil reserves in an effort to stabilise crude prices and cushion markets from the impact of the Middle East conflict.
The announcement came ahead of a virtual meeting of leaders from the Group of Seven, where they are expected to discuss the broader economic fallout from the US-Israeli conflict with Iran, which has now entered its second week. The meeting is being chaired by Emmanuel Macron, President of France.
A day earlier, member states of the Paris-based International Energy Agency held emergency talks to review global energy supply security and consider the possible release of emergency oil stocks as the conflict continues to rattle markets.
“In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves,” energy ministers from the G7 said in a joint statement on Wednesday, according to Agence France-Presse. France currently holds the group’s rotating presidency.
Megha Rawat is an Assistant News Editor at Times Now, where she drives the national news narrative with sharp political reporting, election coverage a...View More
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
