Japan PM says economic activity must continue despite Mideast energy shock

Japanese Prime Minister Sanae Takaichi said on Monday that economic and social activity “should not be halted” despite energy disruptions caused by the ongoing Middle East conflict, according to local media reports. Her remarks came days after the government urged the public to limit energy usage amid supply uncertainties due to the war, Kyodo News reported. “I do not believe economic or social activity should be halted at this point,” Takaichi said in response to a parliamentary question about emergency economic measures.

Strait of Hormuz closure hits resource-strapped Japan

The effective closure of the Strait of Hormuz due to the US-Israeli war on Iran, which began on February 28, has left resource-dependent Asian nations — including Japan — calling for reduced fuel consumption. Japan relies heavily on the Middle East for its crude oil imports. Takaichi stated that her government is working to secure oil supplies from alternative sources.

Strategic reserves and budget flexibility

Japan has already released its strategic oil reserves twice, with a third release scheduled for May 1. Takaichi said she does not currently see the need for a supplementary budget, noting that the government can tap reserve funds if necessary to respond to the Middle East situation. Parliament enacted a record 122.31 trillion yen ($768 billion) fiscal 2026 budget earlier this month.