Japan’s PM Says Economy Will Not Stop Amid Energy Disruptions

(MENAFN) Japanese Prime Minister Sanae Takaichi drew a firm line Monday, insisting that the nation's economic and social machinery must keep running despite mounting energy pressures stemming from the Middle East conflict — even as her own government had days earlier urged citizens to rein in fuel consumption, Tokyo-based media reported.

Fielding a question in parliament from an opposition lawmaker pressing for emergency economic intervention, Takaichi pushed back with measured resolve. "I do not believe economic or social activity should be halted at this point," she stated.

The premier's remarks come as the near-total closure of the Strait of Hormuz — a direct consequence of the US-Israel war on Iran that erupted on February 28 — has left resource-dependent Asian nations scrambling to offset severe fuel supply shortfalls. Japan, which leans heavily on the Middle East for its crude oil imports, finds itself among the most exposed economies in the region.

Takaichi confirmed that her administration is actively pursuing alternative oil procurement channels to reduce dependence on disrupted supply routes. The effort has already prompted Japan to dip into its strategic oil reserves twice, with a third drawdown officially scheduled for May 1.

On the question of fiscal firepower, Takaichi signaled restraint for now, indicating she sees no immediate necessity for a supplementary budget — noting the government retains access to reserve funds within the existing budget framework should the Middle East situation deteriorate further. That budget, enacted earlier this month, stands at a record 122.31 trillion yen — equivalent to approximately $768 billion — for fiscal year 2026.

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