PM Takaichi: Japan should keep economy running amid crisis

Japan’s Prime Minister Sanae Takaichi said the country’s economic and social activity “should not be halted” despite growing energy pressures linked to the ongoing Middle East conflict.

Her remarks come just days after the government urged households and businesses to reduce energy consumption amid uncertainty in global fuel supplies caused by disruptions in the region, News.Az reports, citing Turkish media.

Speaking in parliament, Takaichi rejected the idea of emergency shutdown-style measures, saying there was no need to pause economic activity at this stage. She stressed that the government would instead focus on maintaining stability while managing energy risks.

The warning follows heightened concerns over oil supply routes, including the Strait of Hormuz, which has been affected by tensions tied to the Iran conflict. Japan, which relies heavily on Middle Eastern crude imports, is particularly exposed to fluctuations in global energy markets.

Authorities in Tokyo have already taken precautionary steps, including releasing strategic oil reserves twice, with a further release scheduled for May 1 if needed.

Takaichi also said the government is working to diversify oil supply sources and ensure sufficient reserves, adding that current budget reserves are available to respond without requiring an immediate supplementary budget.

Japan recently approved a record 122.31 trillion yen ($768 billion) budget for fiscal 2026, which officials say provides flexibility to manage external shocks.

Despite the energy uncertainty, the prime minister emphasized that Japan aims to maintain normal economic and social functions while closely monitoring global developments.

News.Az 

By Aysel Mammadzada