Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:45–10:03 a.m.
Tuesday, June 16, 2026
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Agreement of a Memorandum of Understanding between the United States and Iran

Q: I would like to ask you about the situation in the Middle East. The United States and Iran announced yesterday that they agreed on the cessation of hostilities. First, could you please share your views on this? Also, both the United States and Iran have indicated that the Strait of Hormuz will be opened after the signing ceremony on June 19. Could you please share your thoughts on the prospects and challenges of opening the strait, the expectations for resolving energy supply concerns, and the future policy regarding the alternative procurement of crude oil that the government is currently pursuing together with the private sector?

A: I am aware of the media reports. The Government of Japan welcomes this agreement on a Memorandum of Understanding as a significant step toward resolving the situation. I strongly hope that this Memorandum of Understanding will be steadily implemented and that free and safe navigation in the Strait of Hormuz will be actually ensured as soon as possible, and we will be closely monitoring the developments. Regardless of the situation in the Strait of Hormuz, we are already on track to restore crude oil procurement for July to approximately 100% on a year-on-year basis. As a result, even if we conservatively assume that procurement will continue at a level of 75% on a year-on-year basis from August onward, it is projected that by utilizing our stockpiles, a stable supply of oil will be possible until the end of March 2028, or in other words, throughout FY2027. We will continue to closely monitor international energy market trends with a sense of urgency, and we will make all-out efforts to minimize the impact on Japan's economy and people's lives.

Q: The Government of Japan has been making efforts to procure oil from the United States or through routes that do not pass through the Strait of Hormuz in the Middle East. If the strait were to be opened, how would that affect the current measures for the alternative routes going forward?

A: Regarding this matter, the Government of Japan naturally recognizes that in light of the current tense situation in the Middle East, we are facing various challenges that must be considered, such as diversifying our energy supply sources. Alternative procurement is, on the other hand, conducted by private companies based on their own judgment. As I understand it, before tensions rose in the Strait of Hormuz, about 40% each was sourced from Saudi Arabia and the UAE. That is so-called term contracts, which generally last for about a year, though some are longer. By contrast, alternative procurement is basically done on a spot basis, buying just one tanker's worth at a time, and they are different in nature.

Once the Strait of Hormuz is opened, there is no doubt that private companies will consider various options, whether they will return to the normal annual base or pursue other alternatives. From our position of needing to diversify procurement, we intend to communicate and cooperate closely with them. At this point, nothing has been decided regarding what policies will be adopted or what actions will be taken once the Strait of Hormuz is opened.

Strike at the Ichthys LNG Project in Australia

Q: I would like to ask about liquefied natural gas (LNG) in Australia. Despite the fact that the impact on LNG shipments continues to widen due to the strike at Australia's Ichthys LNG Project, which began on May 27, the Australia’s Fair Work Commission rejected a request to halt the strike at the Ichthys LNG Project over the weekend. Japanese companies are purchasing the majority of the Ichthys LNG production. Could you please share your thoughts on the impact this will have on Japan's LNG procurement this summer?

A: I am aware that INPEX's application to halt the strike at the Ichthys Project in Australia was rejected. We are currently examining the impact of the ongoing strike on the LNG supply to Japan. We are working closely with INPEX and will be receiving regular updates on the progress of negotiations, operational status, and policies regarding the continuation of supply. In addition, we are aware of the procurement status of the power and gas companies that receive supplies from the Ichthys Project. We are also confirming how to respond in the event of any disruptions to the supply. In order to ensure that there are no disruptions to the stable supply of electricity and gas this summer, we will continue to work closely with INPEX and power and gas companies while closely monitoring the developments of the strike in Australia and the LNG market, and we intend to take all possible measures to ensure a stable supply of LNG.

Joint stockpiling of critical minerals

Q: I would like to ask you about critical minerals. During the current G7 Summit, Prime Minister Takaichi proposed the joint stockpiling of critical minerals, and I believe that discussions on strengthening supply chains and reducing dependence on specific countries will intensify in the future. I believe it is becoming more important to share a sense of crisis regarding joint stockpiling and the minimum price system if these are to become concrete measures, especially since each like-minded country is in a different situation. Given the recent ministerial meeting on critical minerals, what is your impression regarding the alignment among these nations? Could you share your thoughts on the overall temperature of the discussions and any challenges you see going forward?

A: First of all, I would like to refrain from making any premature comments on the outcome of the G7 Summit at this time. With that in mind, regarding stockpiling, Japan’s crude oil stockpiling, which began after experiencing the two oil crises in the 1970s, has garnered much attention throughout the years; however, Japan also established a system for stockpiling critical minerals in 1983, and has been releasing stockpiles as needed to prevent disruptions to supply chains. Japan’s system is a rare example of such an effort globally. When I participated in the G7 Critical Minerals Ministerial Meeting held in May, I realized that there were very high expectations placed on Japan regarding cooperation, such as knowledge sharing, as Japan is the only G7 country that maintains a national stockpiling system for critical minerals for civilian use. If cooperation on joint stockpiling of critical minerals were to be realized during this G7 Summit, I believe it would be extremely meaningful and timely from the perspective of strengthening supply chains among like-minded countries.

Details regarding specific mineral types and how cooperation will be advanced in each country will be discussed by the G7 countries in the future, based on the discussions at this G7 Summit. Therefore, I would like to refrain from making any premature comments at this time. Moreover, to add just a few more points, as you know, Prime Minister Takaichi advocated for the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia). Regarding Southeast Asian countries, efforts are underway to establish crude oil stockpiling systems. In addition, developed Western countries including the United States are establishing a system for stockpiling critical minerals. Both of these systems are based on Japan's system, and there are various other similar initiatives that the Prime Minister proposed at the G7 Summit. Prime Minister Takaichi is conducting diplomacy very effectively. She said that she would restore Japanese diplomacy and allow it to flourish on the world's center stage, and I believe she is brilliantly embodying that vision. As the minister in charge, I would also like to ensure the flourishing of areas for which I am responsible.