TOKYO (March 19): Japanese companies, from steel producers to chemical firms and even sento baths, are feeling the heat from reduced Middle East energy supplies, even as the government tapped stockpiles for a record oil release to soften the blow. Japan relies on the Middle East for around 90% of its oil supplies, which mainly flow via the Strait of Hormuz, which is effectively closed as a result of the US-Israeli war on Iran. Japan may seek to purchase oil from non-Gulf destinations, including from the United States, and use more coal in its power generation, according to officials. As supplies become tighter, even Japan's popular snacks and public baths — known as sento — are halting production, reducing hours or shutting. Katsuragi Onsen, a small sento in Aomori prefecture in northern Japan, said on March 17 it will close at the end of May.

Source: The Edge Markets March 19, 2026 12:19 UTC