Japan’s Crude Oil Imports Plunge 66% as Middle East Conflict Disrupts Global Supply Routes
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May 29, 2026
6:26 am
Japans Crude Oil Imports Plunge 66 As Middle East Conflict Disrupts Global Supply Routes

Japan’s crude oil imports fell sharply in April, dropping nearly 66% year-on-year, as escalating geopolitical tensions in the Middle East disrupted key supply routes, according to data released Friday by Japan’s Ministry of Economy, Trade and Industry (METI).

The decline underscores growing volatility in global energy markets, with supply chains heavily impacted by conflict-related disruptions in one of the world’s most critical oil transit corridors.

Sharp Drop in Crude Imports

Japan, the world’s fifth-largest oil importer, brought in approximately 850,000 barrels per day (bpd) of crude oil in April, equivalent to 4.07 million kilolitres, METI data showed.

Compared with a year earlier, total crude imports fell 65.7%, while imports from the Middle East plunged 68%, reflecting severe supply constraints.

Japan depends heavily on Middle Eastern oil, making it particularly vulnerable to disruptions in the region.

Strait of Hormuz Disruptions Hit Supply Chains

The decline in imports is largely attributed to ongoing conflict involving the U.S. and Iran, which has significantly disrupted shipping through the Strait of Hormuz, a vital passageway for roughly 20% of global oil and liquefied natural gas flows.

The conflict has severely reduced shipping activity through the corridor, pushing energy flows well below pre-war levels and forcing refiners across Asia to adjust operations.

Major Suppliers See Heavy Declines

Japan’s two largest crude suppliers—Saudi Arabia and the United Arab Emirates—both recorded declines of more than 60% in shipments to Japan.

Imports from Saudi Arabia fell sharply, while UAE shipments also saw steep reductions, highlighting how deeply the supply shock has affected Japan’s core energy sources.

Refiners Cut Output Amid Shortages

Energy shortages have forced refiners in Japan and across Asia to reduce processing activity during April and May.

Japan’s refinery output dropped 11.4% year-on-year, reflecting weaker crude availability and softer downstream demand.

Domestic oil product sales also declined 11.3% year-on-year, falling to 2.04 million bpd.

Fuel Demand Weakens Across Categories

All major petroleum product categories recorded declines:

  • Gasoline sales fell 2.6%
  • Kerosene sales dropped 13.3%
  • Naphtha, a key petrochemical feedstock, plunged 35.6%

The weakness suggests both industrial and household energy demand softened amid supply constraints and higher prices.

Broader Impact on Asian Energy Markets

The supply disruption has prompted refiners across Asia to scale back operations, contributing to tighter regional fuel markets.

Several crude tankers have reportedly left Gulf ports, but overall shipping volumes remain significantly below pre-conflict levels.

Analysts note that continued instability in the Strait of Hormuz could further strain global oil logistics, particularly for import-dependent economies like Japan.

Outlook

With Middle East tensions still unresolved, Japan’s energy security challenges are expected to persist in the near term. The sharp contraction in imports highlights the country’s vulnerability to external shocks and underscores the importance of diversified energy sourcing strategies moving forward.

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