Japan To Receive First Oil Tanker Carrying 2 Million Barrels Through Strait Of Hormuz Since Iran War Began

Japan is set to receive its first crude oil shipment through the Strait of Hormuz since the Iran war began in late February, marking a rare tanker transit through one of the world’s most important oil shipping routes.

The very large crude carrier (VLCC) Idemitsu Maru, carrying around 2 million barrels of Saudi crude oil, is expected to arrive at the Aichi refinery of Idemitsu Kosan as early as Monday, according to Japan’s Ministry of Economy, Trade and Industry.

The tanker passed through the Strait of Hormuz in late April after departing from Saudi Arabia’s Ras Tanura port in mid-March. Vessel-tracking data from MarineTraffic showed the ship was close to Japan on Friday.

The shipment is significant because tanker traffic through the Strait of Hormuz has fallen sharply since fighting started on February 28.

The conflict disrupted energy supplies moving through the waterway, forcing major Asian importers to look for crude oil and natural gas from alternative sources.

Japan has been among the countries most affected because more than 90% of its crude oil imports normally come from the Middle East through the Strait of Hormuz.

Along with other developed countries, Japan also released oil from strategic reserves to help manage supply pressure caused by the conflict.

Another Japan-linked tanker, Eneos Endeavor, also crossed the Strait of Hormuz earlier this month.

The vessel, carrying crude oil from Kuwait’s Mina Al Ahmadi terminal, is currently sailing through the Malacca Strait and is expected to arrive in Kiire, Japan, on May 30, according to MarineTraffic data.

Despite these voyages, overall tanker traffic through Hormuz remains far below normal levels.

The waterway has faced restrictions linked to Iran, while the United States has separately enforced a blockade operation in the Gulf of Oman aimed at stopping Iranian oil exports.

The disruption has heavily affected Japan’s oil imports. Preliminary Finance Ministry data showed Japan’s crude imports from the Middle East dropped 67.2% in April compared with the same month last year.

It was the country’s lowest monthly Middle East crude import volume since records began in 1979.

Iran is also discussing a possible toll system for ships using the Strait of Hormuz in talks with Oman, according to comments made this week by Iran’s ambassador to France.

References: Bloomberg, Oil Price