Japan has announced a $10 billion financial support package for Asian nations struggling with surging crude oil prices amid the Middle East crisis.
Prime Minister Sanae Takaichi made the announcement on Wednesday following an online video conference with Southeast Asian leaders. The assistance programme, dubbed “Power Asia,” will primarily take the form of concessional loans aimed at helping countries secure crude oil supplies and maintain supply chains under emergency conditions.
The fund also targets expanding an oil reserve system within Asia, diversifying energy sources and promoting energy conservation. Japan, which imports virtually all of its crude oil, is concerned that economic strain across the region could disrupt its own supply chains for petroleum-derived products including medical supplies.
The announcement comes as the US naval blockade on Hormuz shipping lanes continues to constrain global oil supply, pushing prices above $95 per barrel. Asian economies have been among the hardest hit, with countries like Sri Lanka rationing fuel and seeking alternative suppliers.
While the programme targets Southeast Asia specifically, Sri Lanka — which is also grappling with oil-driven cost pressures — could benefit from the broader regional energy cooperation framework Japan is building.
