As the region struggles with the interruptions brought on by the Iran war, Japan has promised to contribute $10 billion (£7.4 billion) to assist its Asian neighbors, particularly those in South East Asia, in securing energy, notably crude oil.
Following an online meeting with other Asian leaders, Japanese Prime Minister Sanae Takaichi unveiled the new framework for cooperation on Wednesday. Takaichi emphasized during a news conference on Wednesday that Japan is dependent on South East Asia for petroleum-derived goods, particularly medical equipment.Japan is mutually dependent on all Asian nations and has strong supply lines with them, she noted.
Japan’s framework for cooperation seeks to support Asian nations in maintaining supply chains, increasing stocks, and acquiring crude oil and petroleum products. Nearly 90% of the oil and gas that go through the vital waterway are headed for Asia, making the region particularly susceptible to disruptions in the energy supply caused by blockades of the Strait of Hormuz.
According to Japan’s foreign ministry, the $10 billion in financial assistance was about equal to the amount of crude oil that nations in the Association of Southeast Asian Nations (Asean) would import in a year.
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