Japanese Prime Minister Sanae Takaichi announced $10 billion USD (approximately 319 billion baht) in aid to allied Asian countries, including Thailand, to enhance energy security and crude oil reserves, fearing a fuel shortage crisis from the Strait of Hormuz could disrupt supply chains and impact Japan's economy.
Prime Minister Sanae Takaichi revealed after a remote meeting with leaders from ASEAN countries and allies such as Thailand, Australia, India, and South Korea that the aid will be in the form of loans for purchasing crude oil and petroleum products, as well as expanding each country's oil reserves, administered through the Japan Bank for International Cooperation (JBIC).
Prime Minister Takaichi stated, "Japan is closely connected to every Asian country through supply chains. Any shortage or disruption of oil supply in Asia would severely negatively affect Japan’s economy and society as well."
The $10 billion support equates to about 1.2 billion barrels of crude oil, matching ASEAN countries' annual crude oil imports. Japan is especially concerned that Southeast Asian countries with limited oil reserves might face financial difficulties that prevent oil imports, impacting the production of export goods to Japan, particularly pharmaceuticals and medical equipment.
The crisis has intensified due to the blockade of the Strait of Hormuz, the world's most crucial energy shipping route, causing many regional countries to struggle with paying for oil imports amid continuously rising prices.
The Japanese Prime Minister clarified that this aid is financial support, not distribution of oil from Japan’s own reserves, so it will not affect Japan’s domestic energy security. Japan currently maintains very high oil reserves due to its heavy reliance on imports from the Middle East.
At this meeting, leaders from Thailand, Australia, Bangladesh, Brunei, Cambodia, Timor-Leste, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, and Vietnam jointly issued a statement expressing concern that Asia is the region most severely affected by disruptions in shipping through the Strait of Hormuz, agreeing on the importance of securing these maritime routes.