Japan's cabinet approved three legislative proposals intended to strengthen energy supply security.
The measures include financial support for importers facing higher transportation costs when purchasing crude through routes that bypass the Strait of Hormuz.
The proposals also include government support for maritime insurance when private reinsurance becomes insufficient and expanded authority for the Japan Organization for Metals and Energy Security to invest in alternative supply infrastructure.
According to the Japanese government figures reported by Reuters, 94% of Japan's crude oil imports originated in the Middle East in 2025, and 93% of those shipments passed through Hormuz. The bills still require parliamentary consideration. Reuters
Source: Reuters — Japan's energy-security legislation, October 13
Why it matters strategically
Japan is proposing to intervene directly in the economics of energy procurement.
Normally, importers evaluate crude sourcing based on price, transportation costs, refinery compatibility, and contractual conditions.
Geopolitical disruption can make alternative routes more expensive.
Under the proposed system, some of those additional costs would be compensated through a program financed by contributions from a broad group of importers.
The government would also assume part of the insurance exposure under specified conditions.
