The company has dispelled the rumors that the upcoming security update for Java 7 and those it will release in the future might not work on Windows XP.
Oracle maintains that all versions of Java that were supported prior to the Microsoft de-support announcement will continue to work on Windows XP according to a blog post. Even as the next security updates for Java 7 is scheduled for Tuesday and will fix 20 security issues which could be exploited remotely without authentication, Windows XP users may still continue to use Java 7 updates at their own risk, but support will only be provided against Microsoft Windows releases Windows Vista or later.
The point remains that Oracle can no longer provide complete guarantees for Java on Windows XP, since the OS is no longer updated by Microsoft.
The company, however have strongly recommend that users upgrade to a newer version of Windows that is still supported by Microsoft in order to maintain a stable and secure environment.