Japan approved the Power GX package on the 26th to strengthen energy-supply resilience amid intermittent U.S.-Iran military conflict since February 2026 and growing concern over a possible Strait of Hormuz blockade. The package will subsidize incremental transport costs for crude oil and naphtha procured without transiting the strait, with procurement plans certified by the government and implementation handled by the Japan Organization for Metals and Energy Security. Candidate routes include Fujairah in the United Arab Emirates, Yanbu in Saudi Arabia and supplies from the United States, Algeria and Peru. Japan has historically sourced more than 90% of its crude from the Middle East; existing estimates put the 2025 share at 94%, with 93% of that volume passing through Hormuz. The plan also supports bypass pipelines, restores naphtha to the national petroleum reserve system and promotes nuclear power, perovskite solar cells, hydrogen and ammonia. It targets rebuilding two to five reactors by the 2040s and adding nine more by the 2050s, for a fleet of 11 to 14 units. A detailed Power GX Strategy is due by the end of 2026, while the effectiveness of the measures will depend on private-sector adoption and the time and investment required to diversify supply.