Japan to provide $10 billion to Southeast Asia to secure oil
Japan will provide $10 billion in financial support to nations in Southeast Asia to help them cope with soaring crude oil prices due to the war in the Middle East.Prime Minister Sanae Takaichi announced the aid after the nation held a virtual meeting with regional leaders on Wednesday afternoon. She said in a news briefing that Japan relies on Asian nations to secure medical supplies like surgery gloves.“Japan is closely linked to other Asian countries through supply chains and other means,” Takaichi told reporters. “Fuel shortages and supply-chain disruptions in Asia would hinder the procurement of these medical supplies from Asia to Japan, which would have a significant negative impact on Japan’s economy and society.”Southeast Asian nations including Vietnam have previously sought help from Japan as well as from South Korea for crude oil supplies. Japan has tapped its strategic reserves in two tranches since the Iran war began in late February, but has said its stockpiles are meant for domestic refiners and not for foreign nations.Japan itself isn’t facing an immediate oil shortage. The trade ministry said the country can secure sufficient crude supply for this year by tapping sourcing alternatives to the Strait of Hormuz, where transit remains constrained, and by drawing on its substantial oil reserves.
