By Blessing Nweke
Japan has pledged $10bn (£7.4bn) to help Asian nations secure energy supplies as the region grapples with disruptions linked to the ongoing Iran war. Prime Minister Sanae Takaichi announced the initiative on Wednesday following a virtual summit with regional leaders.
The new cooperation framework is aimed primarily at South East Asia, where economies are heavily reliant on imported oil and gas. Takaichi said the plan would support the procurement of crude oil and petroleum products, strengthen supply chains, and expand national stockpiles.
“Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them,” she stated during a press briefing.
Asia remains particularly vulnerable to energy shocks due to its dependence on shipments passing through the Strait of Hormuz, a critical chokepoint for global oil flows. Nearly 90% of the oil and gas transported through the route is destined for Asian markets.
According to Japan’s foreign ministry, the funding is roughly equivalent to a year’s crude oil imports for member states of the Association of Southeast Asian Nations (ASEAN). Leaders from countries including the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh, and South Korea welcomed the initiative.
The financing will be sourced from institutions such as the Japan Bank for International Cooperation, Nippon Export and Investment Insurance, the Japan International Cooperation Agency, and the Asian Development Bank.
Despite the pledge, Takaichi assured that Japan’s domestic energy security would not be compromised. The country held reserves sufficient for 254 days of consumption at the end of 2025, although it has already released significant volumes to ease market pressures.
Rising oil prices have triggered conservation measures across the region, with the Philippines declaring a national energy emergency and urging regional cooperation.
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