Japan has committed $10 billion to help Asian nations, particularly those in Southeast Asia, secure crude oil and other energy supplies as the region grapples with severe market disruptions triggered by the war in Iran.
Prime Minister Sanae Takaichi announced the new cooperation framework on Wednesday following an online meeting with other Asian leaders.
The initiative aims to assist regional countries in procuring crude oil and petroleum products, maintaining vital supply chains, and expanding strategic stockpiles. The funding will be drawn from state-backed institutions, including the Japan Bank for International Cooperation and the Asian Development Bank.
Asia is considered especially vulnerable to energy shocks due to potential blockades of the Strait of Hormuz, through which nearly 90% of the oil and gas transiting the waterway is destined for the region.
Speaking at a press briefing, Ms Takaichi underscored Japan’s deep economic integration with its neighbours.
“Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them,” she said. She also noted that Japan relies on Southeast Asia for critical petroleum-derived products, including essential medical equipment.
Japan’s foreign ministry stated that the $10 billion aid package is roughly equivalent to a year’s worth of crude oil imports by member states of the Association of Southeast Asian Nations (ASEAN). Leaders from the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh and South Korea, who took part in the meeting, welcomed the initiative.
While Ms Takaichi assured that the plan would not negatively impact Japan’s domestic oil supplies, the global energy crisis has already forced authorities to tap into national reserves. At the end of 2025, Japan held enough reserves for 254 days of domestic consumption. Last month, it released a record 50 days’ worth of oil, with another 20 days’ supply scheduled for release in early May.
Fears are also mounting over a potential shortage of naphtha – a petrochemical derived from crude oil that is a key raw ingredient for plastics. Hospitals, which rely on naphtha-based products such as syringes, gloves and dialysis equipment, are particularly anxious. Although Ms Takaichi has urged calm, insisting there will be no immediate disruptions, concerns persist that shortages could further strain Japan’s already overburdened healthcare system.
Across Southeast Asia, soaring oil prices are inflicting severe pain, with governments urging citizens to carpool and curb air-conditioning use to conserve energy. The Philippines has declared a national energy emergency.
At Wednesday’s summit, Philippine President Ferdinand Marcos Jr called on ASEAN to activate a fuel-sharing pact.
“No single country in Asia can insulate itself from supply chain shocks of this scale by acting alone,” he said.
