Iran and Oman plan for temporary Hormuz corridor

Japan aims to fortify its energy security by advancing pipeline projects that circumvent the Strait of Hormuz, following the U.S.-Iranian conflict that exposed the country's dependence on Middle Eastern oil supplies. This new strategy, outlined in documents from the Cabinet Office, also seeks to broaden the range of oil sources and provide assistance with shipping expenses.

Prime Minister Sanae Takaichi emphasized the significant shift in energy dynamics, prompting the government to finalize the plan by the end of the year. Prior to the war, which began in late February, Japan sourced over 90% of its crude oil from the Middle East. Consequently, Japanese refiners have had to turn to alternative suppliers, such as the United States, and have tapped into the nation's strategic reserves to compensate for the shortage.

The plan involves strengthening the risk financing capabilities of JOGMEC, a government-backed entity that offers financial support and liability guarantees to Japanese companies investing in overseas resources. Furthermore, Japan plans to ensure the reliability of oil shipments by arranging appropriate insurance for vessels and will aim to increase crude reserves to meet domestic demand for naphtha.