Japan asks G7 to prepare more measures to stabilise energy markets

• The conflict has created the 'biggest-ever disruption to global energy' and is severely impacting Asian supply chains with fuel and raw material shortages
• G7 urged countries to avoid imposing unjustified export restrictions on hydrocarbons following the meeting with finance and energy ministers
• Japan provided emergency fuel support to the Philippines, delivering 142,000 barrels of diesel on March 26 to help maintain regional supply chains

Summary

Japan's Industry Minister Ryosei Akazawa called on G7 nations and the International Energy Agency to prepare additional measures to stabilize energy markets amid escalating Middle East tensions. Speaking after a G7 online meeting on March 30, Akazawa said potential actions could include coordinated oil stockpile releases if the crisis continues.

Key Crisis Details:

• A war on Iran launched by the U.S. and Israel on February 28 has spread across the Middle East, causing the biggest-ever disruption to global energy markets
• Asia faces acute soaring energy prices and supply concerns, with fuel and raw material shortages disrupting global supply chains
• Iran rejected U.S. peace proposals as "unrealistic, illogical and excessive" and continued missile attacks on Israel

Market Response:

• Multiple countries dependent on Gulf oil, gas, and product imports—notably China—have taken measures to secure local supplies
• The G7 called on nations to "refrain from imposing unjustified export restrictions on hydrocarbons and related products"
• The Philippines procured 142,000 barrels of diesel from Japan, which arrived March 26

Japan's Position:

Akazawa emphasized Japan's extensive Southeast Asian supply chains and the importance of ensuring regional fuel supplies. While prioritizing domestic energy security, Japan pledged to maintain close communication with regional partners to support their energy needs.

The crisis poses significant negative impacts on the global economy, particularly affecting Asian markets heavily reliant on Middle Eastern energy imports.