Japan pledges $10 billion to help Asian countries battle oil shortages triggered by the Iran war. Prime Minister Sanae Takaichi unveiled the framework after an online summit with regional leaders.
South East Asia relies heavily on the Strait of Hormuz, where 90% of oil and gas heads to the region. Blockades cripple supplies, hitting petroleum products Japan needs for medical gear.
The aid secures crude oil procurement, bolsters stockpiles, and protects supply chains. It matches one full year of crude imports for ASEAN nations. Leaders from Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh, and South Korea applaud the move.
Japan taps state banks, export insurers, JICA, and Asian Development Bank for funding. Takaichi assures no hit to domestic supplies—Japan holds 254 days of oil reserves despite recent releases of 70 days’ worth.
Naphtha shortages loom large for plastics and hospital essentials like syringes and gloves. An ageing population strains healthcare further, but officials urge calm amid no immediate threats.
