Japan has pledged $10 billion (£7.4 billion) to support Asian nations, particularly in Southeast Asia, in securing energy supplies such as crude oil amid disruptions caused by the Iran war. Prime Minister Sanae Takaichi announced the initiative after an online meeting with regional leaders, stressing Japan’s deep interconnection with Asian supply chains, especially for petroleum-derived products like medical equipment.
The cooperation framework will help countries procure crude oil and petroleum products, strengthen supply chains, and expand stockpiles. With nearly 90% of oil and gas passing through the Strait of Hormuz bound for Asia, the region is highly vulnerable to blockades and disruptions. Japan’s foreign ministry noted that the $10 billion aid is roughly equal to a year’s worth of crude oil imports by ASEAN nations.
The initiative was welcomed by leaders from countries including the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh, and South Korea, with funding expected to come from multiple sources. Analysts highlight that this move underscores Japan’s commitment to regional energy security and resilience, while reinforcing its role as a key partner in Asia’s economic stability..
Concerns are mounting over shortages of naphtha, a petrochemical derived from crude oil and essential for producing plastics used in critical medical supplies such as syringes, gloves, and dialysis equipment. While Takaichi urged calm, fears remain that shortages could strain Japan’s healthcare system, which is already under pressure from an ageing population.
Across Southeast Asia, soaring oil prices have triggered energy-saving measures, with governments urging citizens to carpool and reduce air-conditioning use. The Philippines has gone further, declaring a national energy emergency. At the same summit hosted by Japan, Philippine President Ferdinand Marcos Jr. called on ASEAN to activate its fuel-sharing pact to ease the crisis.