Japan Trade Chief Warns Strait of Hormuz Is Effectively Closed

The Joint Maritime Information Center maintains a 'severe' threat level for the region, warning mariners of sustained naval activity and increased monitoring by Iranian forces. For Japan, which historically sourced 95% of its crude oil from the Middle East, the closure represents a profound logistical crisis. Okafuji, who also serves as CEO of Itochu Corporation, estimates that rerouting vessels around the Cape of Good Hope will inflate transportation costs by more than 30%.

To mitigate the supply shock, Japanese refiners are pivoting toward alternative producers in the United States, Azerbaijan, and Latin America. This transition follows a historic collapse in Middle Eastern imports, which hit record lows in April. While the government has tapped into strategic reserves to stabilize domestic throughput, the reliance on longer, more expensive transit routes underscores the vulnerability of Japan’s energy security in the face of ongoing maritime instability.