The Hormuz Shock: Japan’s Energy Security under Strain
When oil stopped flowing freely through the Strait of Hormuz in March, Japan tapped its strategic reserves and increased imports from the United States. Gasoline prices rose about 20 percent, prompting the government to introduce a fuel-price mitigation program. Despite these measures, the country likely cannot diversify substantially away from the Middle East.
Why it matters: This highlights the theme of energy security, as Japan's reliance on Middle East oil leaves it vulnerable to disruptions in the Strait of Hormuz.