Nearly two months after the Iran war closed the Strait of Hormuz, Japan, the Philippines, and Vietnam have taken bold steps to safeguard their oil and gas supplies against the worst energy disruption since the 1970s. These countries, heavily reliant on imports, are drawing on reserves, diversifying sources, and boosting shipments to stabilize their economies.
Japan’s Long-Term Oil Assurance
Prime Minister Sanae Takaichi announced that Japan has locked in oil supplies through early 2027 via ramped-up purchases from the U.S. and non-Hormuz Middle Eastern exporters. U.S. imports to Japan are set to quadruple year-over-year from May, while alternative Middle East sourcing jumped over 20% in April from 2025 levels. The nation also tapped strategic reserves in mid-March and plans another 20-day release starting in May, easing immediate shortages.
This stability pressures the Bank of Japan amid rising energy costs, with former board member Seiji Adachi predicting a likely rate hike by July and a coin-flip chance in April. Takaichi’s easing stance adds tension to the central bank’s decisions.
Philippines Bolsters Diesel Stocks
The Department of Energy confirmed the arrival of all four emergency diesel shipments totaling 178.3 million liters, about five days’ buffer, routed from Japan, Singapore, and Malaysia to ports in Batangas, Subic, and Davao City. Inventories now cover 54 days for diesel and 53 for gasoline, up from 45 days in mid-March.
As a nation importing 90% of its oil, the Philippines faced acute strain after President Ferdinand Marcos Jr. declared a national energy emergency when the strait shut in late February.
Vietnam Hits LNG Import Peak
Vietnam smashed its monthly LNG record in April, importing 276,000 tonnes, over double last year’s pace, with about half from Australia to sidestep Hormuz routes. This surge outpaces prior months, like March’s 70,000 tonnes, amid hotter weather forecasts and global supply curbs.
Asia absorbs 84% of Hormuz crude and 83% of its LNG, per U.S. Energy Information Administration data. Even after a brief U.S.-Iran ceasefire in April, full recovery, especially Qatari LNG, could drag on for months. These moves highlight the region’s push to blunt the crisis’s edge.
0 Comments