Japan is taking steps to build reserves of naphtha after supply disruptions caused by the ongoing war in Iran and the effective closure of the Strait of Hormuz. The Japanese government may request oil companies to store crude oil that can be processed into naphtha to mitigate future shortages. However, policymakers face challenges related to cost and practicality, limiting the available options for establishing these reserves.
Petroleum containers in Chiba prefecture, near Tokyo, illustrate the infrastructure involved in Japan's energy storage efforts. Despite the urgency, economic and technical difficulties remain significant obstacles.
Sources:
- Nikkei Asia, "Japan aims to build naphtha reserves after Iran war shortages," July 23, 2026, https://asia.nikkei.com/business/markets/commodities/japan-aims-to-build-naphtha-reserves-after-iran-war-shortages
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