Issue Brief
July 22, 2026 • 3:24 pm ET
Ben Cahill
Bottom lines up front
Japan navigated the first four months of the Strait of Hormuz closure with relative ease, thanks to ample stockpiles of crude oil and refined products and a diverse slate of liquefied natural gas (LNG) suppliers. But sustained market disruption has taken a heavy toll.Recent interviews in Tokyo with Japanese policymakers, oil and gas companies, utilities, and trading houses suggest that deep concern about supply risks, rising energy prices, and the availability of consumer goods is spurring a re-examination of long-held energy security assumptions.This paper summarizes the market impact of this supply shock for crude oil and products, LNG, and petrochemicals; the energy security vulnerabilities revealed since March; and potential policy responses as Japan looks ahead to its next strategic energy plan.
