Japan’s Prime Minister Sanae Takaichi has announced Tokyo will “act first” to release oil from its national reserves, a move aimed at calming fears that high energy prices could put the country at risk of falling into stagflation.
Japan’s heavy reliance on energy imports from the Middle East has been graphically exposed by the war in Iran, posing the first major challenge to Takaichi’s policy agenda since her landslide election victory last month.
The prime minister on Wednesday said in remarks broadcast by state broadcaster NHK that Japan had decided to tap its national oil stockpile as early as March 16, without waiting for the International Energy Agency to make a formal decision on a co-ordinated release.