Japan Plans Up to $10B Aid Package for Southeast Asia Amid Middle East Oil Crisis

Gate News message, April 15 — Japan plans to provide up to $10 billion in financial assistance to Southeast Asian countries to help them cope with soaring crude oil prices caused by the Middle East war, according to reports.

Japan imports oil-related products from Southeast Asia, and insufficient oil reserves in some countries could disrupt supplies and negatively impact Japan's healthcare system, the reports said.

Prime Minister Sanae Takaichi is expected to announce the aid package, which may include loans, during a video conference with regional leaders on Wednesday afternoon (April 16). Chief Cabinet Secretary Minoru Kihara said earlier Wednesday that Japan is "considering mutually beneficial cooperation with Asian countries from the perspective of securing oil product supplies and strengthening supply chains."

Southeast Asian countries including Vietnam have previously sought help from Japan and South Korea for crude oil supplies. Japan has tapped its strategic petroleum reserves twice since the Iran war began about six weeks ago, but stated the reserves are for domestic refineries only and not for foreign supply. Japan's Ministry of Economy, Trade and Industry said the country can ensure sufficient crude oil supply this year by finding alternative transportation routes outside the Strait of Hormuz and drawing on its ample oil reserves.