National Interest | Jane Nakano
The Iran War has created significant momentum for the United States, South Korea, and Japan to establish shared strategic oil and LNG reserve arrangements, driven by the de facto closure of the Strait of Hormuz and damage to Persian Gulf energy infrastructure. South Korea and Japan, highly reliant on Middle Eastern oil (over 70% and 90% respectively) and natural gas (20% and 11% respectively as of 2025), face severe energy security challenges. The United States has emerged as a critical backstop, with crude exports jumping from 4 million barrels per day (mm bpd) in 2025 to 5.2 mm bpd in March and April, and Asia-bound shipments increasing by 65% year-over-year. US naphtha exports to Japan reached their highest since December 2021, and the US became South Korea's largest naphtha supplier. US LNG exports also surged by 15% in March to 11 million tons, with Asia-bound shipments increasing 175% since late February. Trilateral cooperation could involve leasing storage for US oil in South Korea and Japan, offering priority purchasing rights, or establishing virtual strategic gas reserves to enhance economic resilience and US national security interests.
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