Japan is weighing an additional release of about 20 days’ worth of oil reserves as early as May as the vital Strait of Hormuz remains largely closed despite a fragile two-week ceasefire between the US and Iran, according to Reuters.

Japan began releasing oil from its stockpiles on March 16 ⁠in coordination with other nations and on its own. The country is making available ​about 50 days’ worth of oil consumption and has asked the International Energy Agency (IEA) to ​consider a coordinated release of a second batch, as Reuters reported.

IEA member countries agreed on March 11 to release 400 million barrels (mmbbl) of oil from their emergency reserves amid market disruptions from the Middle East conflict. Notably, IEA members hold emergency stockpiles of over 1.2 billion barrels (bbbl), with a further 600 mmbbl of industry stocks held under government obligation.

Dependent on the Middle East for 95% of its oil, Japan currently holds reserves for 230 days. However, with the Strait of Hormuz, which carries 20% of global supply, remaining impassable, domestic refineries have slashed utilization rates to 67.7% in the week to April 4, the lowest level since last June.

In response to the supply imbalances and distribution bottlenecks, Tokyo has implemented several emergency measures, including searching for non-Middle Eastern crude sources, rolling out gasoline subsidies to curb soaring pump prices, and increasing coal-fired power to compensate for reduced Liquefied Natural Gas (LNG) supplies, which have also been cut due to the closure of the Strait of Hormuz.

Simultaneously, Indian fuel retailers have begun purchasing diesel from refiners at discounted rates to prevent retail price hikes for consumers.

The energy scramble comes as the US-Iran two-week ceasefire, agreed upon on April 7, faces a critical test. While the truce was conditioned on the reopening of the Strait of Hormuz, the waterway remains shuttered to most commercial traffic, leaving global energy security in a state of high uncertainty