Japan, like much of Asia, which is highly reliant on Middle East oil and gas, announced Wednesday that it will provide $10 billion to many of its regional trade partners to find new supplies during the Strait of Hormuz crisis. As Prime Minister Takaichi Sanae put it, Asian countries “are mutually dependent.”
Much of that money will go to Southeast Asia, where nations have reacted to the crisis by trying to revive a long-standing regional agreement to aid each other during a petroleum emergency. “What this crisis has confirmed is a structural truth: no single country in Asia can insulate itself from supply chain shocks of this scale by acting alone,” said Philippine President Ferdinand Marcos Jr.
At the very least, many Asian countries hope not to restrict their exports of oil-related products to each other – a restriction China has already done. Singapore and Australia, for example, struck a deal last week to maintain their energy interdependence during the crisis. Australia is Singapore’s second-biggest supplier of liquefied natural gas, while Singapore is Australia’s largest supplier of refined fuel.
“We do not plan to restrict exports. We didn’t have to do so even in the darkest days of Covid, and we will not do so during this energy crisis,” said Singaporean Prime Minister Lawrence Wong.
“In times like these,” he added, “we must work closely, move faster, and stand together – not just to manage the risks, but to protect the wellbeing of our people.”
In Europe, meanwhile, which is far less dependent on Gulf oil and more experienced in energy cooperation, officials of the European Union have warned member states not to ban the export of fuel across their borders. During the continent’s last energy crisis – following the 2022 Russian invasion of Ukraine – the EU quickly reduced its dependency on Russian gas and oil.
The current crisis has also led the continent to assist many Middle East countries at risk. Last week, the European Bank for Reconstruction and Development – originally set up to assist central and Eastern Europe after the Cold War – announced €5 billion ($5.9 billion) in investments for nations such as Iraq, Jordan, and Lebanon to deal with the repercussions of the oil crisis.
All these efforts reflect lessons learned from past energy shortages. “We must not panic. We must work together,” said Vivian Balakrishnan, Singapore’s minister of foreign affairs, on April 13. “We must not compete against each other, but instead support each other mutually.”