Japan Scrambles for Oil Alternatives as Hormuz Dependence Proves Near-Total

Japan, which sources 93.5% of crude oil imports through the Middle East, is pursuing alternatives after the Strait of Hormuz closure cut off its primary supply route. Oil shipments bypassing Hormuz via the UAE's ADCOP pipeline are expected to reach Japan from May. Tokyo is also arranging supplies from the Americas, Central Asia, and Africa, with Inpex prioritizing Kazakh and Azerbaijani crude for Japanese firms. Pipeline alternatives can cover only 35-40% of Hormuz flows. Nomura estimates sustained $120-130/barrel prices would cut Japan's GDP by 0.6%.