Japan has reached an agreement to import 1MMb of crude oil from Mexico, with delivery scheduled for July 2026. The agreement aims to offset the supply disruptions caused by the de facto closure of the Strait of Hormuz, while diversifying Tokyo’s energy sources amid growing uncertainity in global oil markets.

According to Nikkei, the move is part of Tokyo’s strategy to diversify its energy sources due to the ongoing conflict involving the United States, Israel, and Iran. The agreement follows a telephone conversation held on April 21, 2026, between the Prime Minister of Japan, Sanae Takaichi, and President Claudia Sheinbaum. During the call, both leaders committed to strengthening bilateral cooperation regarding energy security. 

“Japan has requested that PEMEX explore the possibility of exporting oil to Japan to the extent possible. An agreement has already been reached for a certain amount of crude to be exported,” President Sheinbaum said, not clarifying the exact amount of oil the country could send. 

Sheinbaum confirmed that the oil that the country will send is part of surplus oil that does not get refined in Mexican refineries. The decision responds to a formal request from the Japanese government to mitigate the impact of the Middle East conflict on maritime traffic through the Strait of Hormuz, a critical transit point for global oil supplies.

“It is not the first time it has been done. This is the surplus crude we still have for export, which is not used in our own refineries,” Sheinbaum stressed.

The Strait of Hormuz as a Global Chokepoint

The closure of the Strait of Hormuz, a critical transit point for global energy flows, has contributed to elevated oil prices and supply chain disruptions since the outbreak of hostilities.

Bloomberg Intelligence has warned that a prolonged closure of the strait could drive oil prices above US$150/b, significantly slowing global economic growth. Such a scenario would also impact industrial metals; copper consumption growth could be limited to between 0.5% and 1%, potentially driving prices below US$10,000/t and creating a refined metal surplus of up to 200,000t, as reported by MBN.

The conflict has already generated volatility across commodity-linked equities. While copper reached an all-time high of US$6.50/lb before a recent correction, gold has stabilized above US$4,700/oz and silver remains above US$70/oz.

Who Are The Largest Oil Reserves Holders? 

The transaction coincides with broader regional efforts by Japan to secure energy supplies. Reports indicate that Tokyo intends to allocate US$10 billion to assist Asian nations in stabilizing oil procurement as geopolitical tensions continue to affect traditional supply lines.

According to the International Energy Agency (IEA), Japan is almost entirely dependent on imports for its crude oil supply, as domestic production accounts for only 0.3% of its total needs. This makes Japan the third-largest oil consumer in the Asia-Pacific region, trailing only China and India, while remaining one of the most vulnerable nations to maritime supply shocks. IEA notes that oil products, specifically gas/diesel and motor gasoline, account for over 50% of Japan’s total final energy consumption, primarily driven by the transport sector.

According to a recent report from the EIA, Japan holds the third-largest strategic oil inventories in the world. As of December 2025, Japan maintained 263MMb in government-held inventories. This is part of a national strategy where the Oil Stockpiling Act requires the industry to hold an additional 70 days of demand, approximately 220MMb, on top of the 90-day strategic reserve overseen by the government.

IEA estimates that China holds the world’s largest strategic inventory, reaching nearly 1.4BB by the end of 2025, followed by the United States, which held 413MMb in its Strategic Petroleum Reserve (SPR) during the same period. Other significant holders include OECD Europe (179MMb) and South Korea (79MMb).