Japan is expected to achieve a 100% alternative crude oil procurement rate by July, following government efforts to diversify import sources in response to the effective closure of the Strait of Hormuz, government officials said.
The exchange of attacks between the United States and Iran following the reported downing of a U.S. Army helicopter by Iran is continuing to affect daily life in Japan, with higher energy prices raising concerns that inflationary pressures could spread further across the economy.
Oil inventories held by member countries of the Organisation for Economic Co-operation and Development (OECD), including Japan and the United States, are expected to fall to their lowest level since records began in 2003 by the end of 2026, according to a forecast released on June 9th by the U.S. Energy Information Administration (EIA).
Japan's naphtha shock may be entering a new phase, with signs that product shortages are gradually easing in some industries while concerns grow that higher transportation costs could drive up prices across the supply chain.
TOTO, the Kitakyushu-based housing equipment manufacturer, resumed full orders for unit baths and related products on June 9th after securing a stable outlook for raw material supplies that had been disrupted by the closure of the Strait of Hormuz and the resulting global shortage of naphtha.
A worsening naphtha shortage linked to tensions in the Middle East is beginning to affect everyday retailers in Japan, with some businesses replacing plastic packaging with newspaper and asking customers to bring their own containers and bags.