Key Takeaways:
- Japan's April crude imports fell 66% to 850,000 bpd, the lowest since 1962
- Middle East crude exports dropped 48% as Iran controls the Strait of Hormuz
- Naphtha shortages are forcing Japanese food packagers to redesign products
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Japan crude imports plunge 66% as Hormuz blockade chokes supply
Japan's April crude imports crashed to their lowest level in 64 years after the Hormuz Strait blockade severed the nation's primary energy lifeline.
Japan's crude oil imports collapsed 66% in April to 850,000 barrels a day, the lowest since November 1962, as Iran's effective control of the Strait of Hormuz severed the nation's primary energy supply route. The data, released Friday by the Ministry of Economy, Trade and Industry, marks the sharpest monthly decline since the 1973 oil crisis.
"The scale of the disruption is unprecedented for a developed economy that relies on the strait for the vast majority of its crude," said Elena Fischer, geopolitical risk analyst at Edgen. "Japan is being forced to rewrite its energy procurement playbook in real time."
Saudi Arabian and UAE shipments — which together supplied 90% of Japan's crude before the US-Israel war on Iran began Feb. 28 — each fell more than 60%, METI data show. Middle East crude exports overall dropped 48% between March and May, according to Kpler tanker-tracking data, with Kuwait and Iraq suffering declines exceeding 90%. Japan has scrambled to fill the gap, boosting US crude purchases from 2% of total imports in February to more than 20% in May.
The supply shock is cascading through Japan's industrial base. Naphtha sales — a key feedstock for petrochemicals — plunged 35.6% in April to 406,231 barrels a day, forcing food packaging companies to switch to monochrome designs amid raw material shortages. Japan's strategic petroleum reserves, covering more than 200 days of consumption, provide a buffer, but Prime Minister Takae Sanae's assurance that naphtha supply can be sustained through year-end hinges on whether the strait reopens.
The Strait of Hormuz handles about a fifth of global oil and liquefied natural gas trade. Since the conflict erupted, Iran has effectively controlled the chokepoint, cutting off the shortest route from Gulf producers to Asian buyers. Saudi Arabia has attempted to reroute exports via the Red Sea, but that path requires transiting the Bab el-Mandeb strait near Yemen, where Iran-aligned Houthi forces pose a persistent threat.
The disruption has hit Asian importers unevenly. Vietnam's crude imports fell 51% in the March-to-May period, while Malaysia's dropped 43%, Kpler data show. China's imports declined a relatively modest 18%, and India's slipped just 3% as New Delhi pivoted to alternative suppliers including Russia and Venezuela. Europe proved more resilient: Greek imports rose 34%, UK imports gained 9% and Spanish imports increased 7%, reflecting diversified supply from the North Sea, the US, North Africa and the Caspian region.
The energy crisis extends beyond crude. A late-March attack on Qatar's main LNG production facility knocked out 17% of the country's capacity, with a senior Qatari official estimating a three-to-five-year recovery timeline. Qatar, which accounts for 20% of global LNG exports, has seen shipments plunge 94%. Japan's LNG imports from the Middle East fell a comparatively mild 11%, reflecting a less concentrated supply base than for crude.
For Japan, the forced diversification represents a structural shift. US crude now accounts for more than a fifth of imports, up from 2% before the war, a rebalancing that will likely persist even if the strait reopens. The last time Japan's crude imports fell to these levels was in 1962, when the nation was still rebuilding from World War II and oil accounted for a far smaller share of its energy mix.
This article is for informational purposes only and does not constitute investment advice.
