https://sputnikglobe.com/20260327/land-of-the-setting-sun-japan-clings-to-us-vassalage-despite-energy-crunch-caused-by-iran-war-1123907388.html
Land of the Setting Sun? Japan Clings to US Vassalage Despite Energy Crunch Caused By Iran War
Land of the Setting Sun? Japan Clings to US Vassalage Despite Energy Crunch Caused By Iran War
Sputnik International
With 90% of Japan’s oil and 11% of its LNG sourced in the Persian Gulf, effectively closed thanks to the US-Israeli war on Iran, Tokyo has been put in a strategic bind, facing growing pressure both domestically and in ties with neighbors.
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Tokyo has contributed 80M barrels of oil to the G7-led 400M barrel phased reserves release, but signaled it will only sell it to domestic refiners, rejecting pleas for help from Vietnam and the Philippines, per Bloomberg.Domestically, the government has been forced to lift restrictions on coal-fired power plants, introduce subsidies to keep gasoline at ~$4 a gallon, and raise household electricity bills by ~$95 starting in April. Over time, logistical, flights, and everything else linked to hydrocarbon energy will face price hikes.80M barrels is enough for ~45 days. If Hormuz remains blocked after then, Japan will have only two options, neither of them good:Notwithstanding these pressures, Japan:
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Land of the Setting Sun? Japan Clings to US Vassalage Despite Energy Crunch Caused By Iran War
With 90% of Japan’s oil and 11% of its LNG sourced in the Persian Gulf, effectively closed thanks to the US-Israeli war on Iran, Tokyo has been put in a strategic bind, facing growing pressure both domestically and in ties with neighbors.
Tokyo has contributed 80M barrels of oil to the G7-led 400M barrel phased reserves release, but signaled it will only sell it to domestic refiners, rejecting pleas for help from Vietnam and the Philippines,
per Bloomberg.
Domestically, the government has been forced to lift restrictions on coal-fired power plants, introduce subsidies to keep gasoline at ~$4 a gallon, and raise household electricity bills by ~$95 starting in April. Over time, logistical, flights, and everything else linked to hydrocarbon energy will face price hikes.
80M barrels is enough for ~45 days. If Hormuz remains blocked after then, Japan will have only two options, neither of them good:
1.
engage in a cutthroat energy bid price war, which will raise domestic prices and worsen ties with other energy-dependent neighbors in Asia
2.
introduce fuel rationing, which could trigger a recession or even a debt crisis (Japan already has a debt-to-GDP ratio of ~240%, the highest among rich nations)
Notwithstanding these pressures, Japan:
continues to buy US Treasuries ($1.2T and counting)
lets 50k+ US troops be stationed on its territory, 80 years after the end of WWII, for ‘defense’ (although the Iran war has seen US pulling out assets and repositioning them in Israel)
keeps sanctions on Iranian oil, one of the only sources of Gulf oil currently making its way past Hormuz
has pledged $73B to US energy security projects, including small modular reactors and natural gas infrastructure in Tennessee, Alabama, Pennsylvania and Texas
swallows US tariffs and accepts an export-crushing strong yen policy to satisfy Washington
sidelines its own foreign policy interests, including ties with powers like China and ASEAN