Video | Japanese energy expert: If oil supply continues to be insufficient, it will drag down the global economy

Why is AI asking: Why has the Strait of Hormuz blockage dealt a heavy blow to Japan’s energy security?

The conflict between the United States, Israel, and Iran has led to tight global energy supplies, prompting countries to take measures to respond to its impact. Among them, on March 16, the Japanese government began releasing oil reserves. Ken Koyama, chief researcher at the Institute of Energy Economics, Japan, said that the situation in the Middle East remains unclear; if this continues, it will keep pushing up oil prices, intensify concerns about supply shortages, and weigh on the world economy.

Ken Koyama, chief researcher at the Institute of Energy Economics, Japan: This crisis has seen attacks by the U.S. and Israel for a month. Although there are reports of a ceasefire, the actual direction remains unclear. If this continues, not only will it raise oil prices for Japan and for the world, but it will also intensify worries about supply shortages, thereby dragging down the global economy. The longer it lasts, the more serious the problem becomes.

Koyama said that the blockage of shipping through the Strait of Hormuz has nearly completely cut off the supply of oil products exported from the Middle East, and Japan, which relies on importing from the Middle East, is also facing severe challenges.

Ken Koyama, chief researcher at the Institute of Energy Economics, Japan: Crude oil can be transported by shipping through pipelines that bypass the Strait of Hormuz, but petroleum products do not have such alternative routes. The exports of petroleum products from the Middle East have essentially been nearly completely halted, which poses a huge challenge for countries that depend on Middle Eastern petroleum products.

About 40% of Japan’s naphtha is imported directly from the Middle East, and the naphtha raw materials produced domestically also depend on crude oil from the Middle East, so the overall impact is substantial. If the crisis drags on, the impact will gradually expand, and the outlook is not optimistic.