15 hours ago
Japan's energy firms wary of oil supply amid Middle East tensions
TOKYO (Kyodo) -- Japan's top power industry official on Friday expressed concern about the risks of both price hikes and supply shortages of crude oil if recent Middle East tensions drag on, potentially dealing a heavy blow to the resource-poor country.
"Not only oil prices but also the supply itself could become an issue, depending on the scale and duration of the conflict," said Kingo Hayashi, chairman of the Federation of Electric Power Companies of Japan, referring to the ongoing fighting between Israel and Iran.
While Japan relies on Middle Eastern nations for more than 90 percent of its crude oil imports, fears are growing that Iran may close the Strait of Hormuz -- a strategic oil shipping route -- in retaliation against Israel and its supporters.
"Taking fuel diversification and flexibility as examples, it's important for each company to explore ways to mitigate the impact as much as possible," Hayashi, who serves as president of Chubu Electric Power Co., said at a press conference in Tokyo.
