Takaichi will be the first major ally to hold face-to-face talks with Trump since he urged Japan and other partners to send naval vessels to escort tankers through the strategically vital waterway, which has been largely disrupted by Iran during the conflict.

“The biggest risk is that Trump publicly presses her for security commitments that she can’t deliver on,” said David Boling of the Asia Group consultancy in Tokyo, a former U.S. trade negotiator with Japan.

The Strait of Hormuz handles roughly a fifth of global energy supplies, with about 90% of Japan’s crude oil imports passing through it, underscoring Tokyo’s exposure to the crisis.

Japanese officials said Takaichi had initially planned to steer discussions toward concerns over China’s regional posture ahead of a delayed visit, but shifting U.S. priorities have forced a focus on Iran and maritime security.

Japan has received no formal request from Washington, Takaichi told parliament earlier this week, adding that the government was assessing possible responses within the constraints of its pacifist constitution.

Several U.S. allies, including Germany, Italy and Spain, have ruled out joining a Gulf mission. Kaja Kallas said on Tuesday that no country was prepared to risk personnel in the conflict zone.

Public sentiment in Japan also remains cautious. Fewer than 10% of respondents support U.S. and Israeli strikes on Iran, according to a poll by the Asahi newspaper.

Trump has alternated between criticising allies for their reluctance and downplaying their necessity, singling out countries like Japan that rely on U.S. security guarantees while depending heavily on Middle Eastern oil flows.

Tokyo has historically limited its role in Middle East operations to logistical and intelligence support. Analysts say deploying Japanese vessels into an active conflict zone would face significant legal and political hurdles.

“It has turned into a discussion that shakes the very foundations of the Japan–U.S. security alliance,” said Kazuhiro Maeshima, a politics professor at Sophia University in Tokyo.

Oil flows are expected to begin at 10 a.m. , according to state media citing Oil Minister Hayan Abdel-Ghani. The agreement includes provisions to enhance security around oilfields and ensure continuity of export operations, Kurdish authorities said.

KRG Prime Minister Masrour Barzani said the region would allow crude exports through its pipeline network “at the earliest possible time” given the exceptional circumstances facing the country. He added that talks with Baghdad would continue to lift trade restrictions and provide guarantees to international oil companies to safely resume production.

Barzani also said he had instructed regional officials to facilitate exports following discussions with U.S. envoy Tom Barrack, emphasising the need to prioritise economic stability for citizens.

Tensions between Baghdad and the KRG had escalated in recent days, with Kurdish authorities accusing the federal government of failing to address security and economic challenges affecting the oil sector. Baghdad, in turn, said the KRG had refused to allow use of a regional pipeline as an alternative export route, alleging the imposition of arbitrary conditions.

The dispute unfolded against the backdrop of wider regional instability, including disruptions to crude flows linked to the Iran conflict.

Iraq’s presidency called on both sides to cooperate to restart exports, while parliament issued a seven-point directive urging the government to secure alternative outlets for crude to mitigate economic damage under current security conditions.

The parliamentary intervention followed consultations with the oil ministry to assess the impact of halted exports after the closure of the Strait of Hormuz, a key global energy transit chokepoint, underscoring the urgency of restoring flows through northern export routes.

Members of the party’s Middle East crisis economic response task force said the measures aim to stabilise domestic energy supply and prices as shipments of oil and gas to South Korea have been disrupted by the regional conflict affecting the vital maritime corridor.

According to data from the Korea International Trade Association, South Korea depends heavily on energy imports, sourcing about 70% of its crude oil and roughly 20% of its liquefied natural gas (LNG) from the Middle East.

Democratic Party lawmaker Ahn Do-geol said the government would prioritise managing LNG supplies by increasing electricity production from coal and nuclear facilities while scaling back reliance on LNG-fired power generation.

Limits that capped coal power output at 80% of installed capacity will be lifted starting Monday, Ahn said. Maintenance work at six nuclear reactors will also be completed earlier than scheduled to raise the utilisation rate of nuclear plants from the high-60% range to about 80%.

The government on Friday introduced a price ceiling on gasoline of 1,724 won ($1.15) per litre, with adjustments planned every two weeks to reflect changes in global oil markets.

Ahn said gasoline and diesel prices had already declined since the cap was introduced, falling by 58 won and 77 won per litre respectively as of Sunday.

Officials said a supplementary budget would be drafted by the end of the month and submitted to parliament to cushion the economic impact of higher energy costs.

Democratic Party leader Jung Chung-rae said the party would fast-track approval of the budget within 10 days after it is submitted. The proposed spending package is expected to include compensation for refiners linked to the fuel price cap, energy vouchers for households, logistics support for exporters and expanded investment in renewable energy.

The Budget Ministry said no specific date had yet been set for the supplementary budget but that preparations were underway.

Authorities are also considering designating the Yeosu Petrochemical Complex as a special industrial crisis response zone as part of efforts to support industries affected by the energy disruption.

In an interview published Sunday by the Financial Times, Trump said the timing of the meeting could shift depending on progress in restoring navigation through the key oil transit route.

“We’d like to know before (the summit),” Trump said, adding that “we may delay,” without specifying how long a postponement might last.

The Strait of Hormuz, which connects Gulf energy producers to global markets, has come under heightened strain during the conflict with Iran, raising concerns about disruptions to international oil shipments.

Washington has sought diplomatic and security cooperation from major powers to ensure the passage remains open as tensions across the Middle East escalate.

Trump’s remarks suggest the United States is looking to China to play a role in stabilizing the situation. Beijing maintains significant economic ties with Iran and is a major importer of Gulf energy supplies that pass through the strait.

The proposed summit in Beijing had been expected to focus on trade and geopolitical issues between the two powers, but Trump indicated that progress on the maritime corridor could influence whether the meeting proceeds on schedule.

The temporary licence was granted as benchmark Brent crude traded around $101 per barrel by 1000 GMT, reflecting continued volatility in energy markets despite Washington’s move. Oil prices have surged nearly 40% since the start of the conflict, driven by fears that escalating hostilities could disrupt global supplies.

Financial markets in Asia also came under pressure as traders weighed the risks of prolonged instability in the Middle East, a region that remains central to global energy production and transportation.

Oil prices jumped about 9% to around $100 a barrel on Thursday as concerns intensified over the durability of supply chains during the ongoing conflict. Traders have been particularly focused on the security of the Strait of Hormuz, the narrow maritime corridor through which roughly one-fifth of the world’s oil supply passes.

Iran has attacked vessels in the strategic waterway during the current confrontation, heightening fears that further disruptions could ripple across global energy markets.

The waiver issued by Washington allows countries to buy Russian petroleum cargoes already at sea, where shipments frequently change ownership during transit. The measure is intended to increase short-term supply availability and reduce upward pressure on prices.

“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long term,” said Scott Bessent, the U.S. Treasury secretary.

The energy market turbulence comes as the conflict between Israel and Iran entered its third week with continued missile exchanges.

Iran launched another barrage of missiles and drones toward Israel on Friday, while the Israeli military said it conducted air strikes across Tehran and continued operations against the Iranian-aligned Hezbollah militia in Lebanon, including strikes around the capital, Beirut.

Iranian media reported that rallies marking Quds Day began across Iran in support of Palestinians. Residents in Tehran and the nearby city of Karaj reported hearing explosions and fighter jets during Israeli strikes, according to local media coverage.

Energy traders have closely followed comments by Donald Trump regarding the likely duration of the conflict, which has added to volatility in oil markets and global equities.

The sharp rise in crude prices has contributed to declines in U.S. stocks and broader market unease as investors assess the potential for prolonged disruptions to energy flows.

The waiver allowing limited Russian oil transactions reflects Washington’s attempt to cushion global markets while the conflict continues to unfold across the region.

The attacks followed nearly two weeks of conflict triggered by joint U.S. and Israeli air strikes on Iran, a war that has killed around 2,000 people and sent shockwaves through global energy and shipping markets. The United Nations Children’s Fund (UNICEF) said more than 1,100 children were among those killed or injured in the fighting.

Maritime security sources and port officials said explosive-laden Iranian boats appeared to have struck two fuel tankers in Iraqi waters, igniting fires and killing one crew member. Projectiles also hit three merchant vessels in Gulf waters, according to maritime risk monitoring firms tracking the incidents.

Oil prices rose nearly 5% on Wednesday and extended gains in Asian trading on Thursday as traders assessed the risk of prolonged supply disruptions in one of the world’s most critical energy corridors.

Crude had surged to nearly $120 a barrel earlier in the week before easing to around $90, but renewed attacks on shipping raised fears of further volatility. Global equities also reacted to the tension, with Wall Street’s main indexes falling and Asian stocks following the downward trend.

Tony Sycamore, an analyst at IG, said the tanker attacks appeared to coincide with efforts by energy authorities to stabilize markets.“This appears to mark a direct and forceful Iranian response to the IEA’s overnight announcement of a massive strategic reserve release aimed at cooling runaway prices,” Sycamore said.

Iran signaled it intends to inflict sustained economic pressure as the conflict spreads across the Middle East. A spokesperson for Iran’s military command warned the United States that oil prices could soar dramatically.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” the spokesperson said in remarks reported on Wednesday.

The war has already prompted governments to prepare what could become the largest coordinated release of strategic oil reserves since the 1970s in an attempt to cushion the global economy from an escalating fuel shock.

Speaking at a campaign-style rally in Kentucky ahead of November midterm elections, where his Republican Party is trailing in several races, Trump said the United States had prevailed militarily but suggested operations might continue.

“We don’t want to leave early do we?” Trump said on Wednesday. “We got to finish the job.

”The conflict has widened beyond Iran’s territory to shipping lanes and energy infrastructure across the region, heightening concerns among governments and markets about the stability of global oil supply and maritime trade routes.

The Paris-based agency is expected to publish the recommendation at 1300 GMT on Wednesday, shortly before leaders of the Group of Seven hold a virtual meeting chaired by Emmanuel Macron to discuss coordinated measures to stabilize energy markets.

A source said the proposed release would be spread over at least two months. Sara Aagesen, Spain’s energy minister, said participating countries could have up to 90 days to release the volume if the plan is adopted.

Aagesen described the proposal as unprecedented in scale compared with previous coordinated actions. During the energy shock following the Russian invasion of Ukraine, around 182 million barrels were released from strategic reserves, she said.

The current proposal would more than double that amount, reflecting concerns among major economies about the impact of the Iran conflict on global oil markets and energy security.

The International Energy Agency coordinates emergency oil stockpiles among major consumer nations, a system established after the oil shocks of the 1970s to provide a buffer against severe supply disruptions.

Leaders of the Group of Seven are scheduled to discuss the proposal in a meeting led by France on Wednesday after the bloc’s energy ministers voiced support for using strategic reserves to counter market volatility.

“In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves,” G7 energy ministers said in a joint position.

A G7 source told Reuters that while there is currently no physical shortage of crude oil among member states, sharply rising prices and market volatility have prompted governments to consider coordinated intervention.

Oil prices initially surged following the escalation of the U.S.-Israeli conflict with Iran, though markets later rebounded as traders questioned how effective a large reserve release would be in easing supply concerns.

Tomas Kaberger, chair of the Tokyo-based institute’s executive board, said the crisis had underscored Japan’s exposure to supply disruptions and rising fuel costs as tensions in the region intensify.

Japan relies on the Middle East for about 95% of its crude oil imports and roughly 11% of its liquefied natural gas supplies, according to industry estimates. Around 70% of its oil shipments and 6% of LNG imports typically pass through the Strait of Hormuz, a critical global energy corridor.

The halt in tanker traffic through the strait has triggered sharp increases in fuel prices, placing additional pressure on energy-importing economies such as Japan.

“When fossil fuel imports are cut, the power plants stop and your cars stop running,” Kaberger told Reuters in an interview last week, describing the risks posed by reliance on overseas fuel supplies.

He said the current crisis involving Iran served as a reminder that fossil-fuel dependence exposes economies to geopolitical tensions and price volatility.

The renewed focus on energy security comes as Japan marks 15 years since the Fukushima Daiichi nuclear disaster, which transformed public attitudes toward nuclear power and reshaped the country’s energy policy.

Kaberger cautioned against viewing nuclear energy as a long-term solution, arguing that large centralized power plants could be vulnerable to modern military threats such as drones and precision strikes.

He pointed to damage inflicted on energy infrastructure during the Russia-Ukraine war as evidence that large facilities can be targeted during conflicts.

Instead, Kaberger said decentralized renewable systems including solar, wind and battery storage could provide stronger resilience because they distribute generation across multiple locations.

He added that advances in renewable technology have altered Japan’s long-standing perception of resource scarcity. While the country was historically considered resource-poor due to limited reserves of oil, coal, gas and uranium, falling costs of solar and wind power have shifted the landscape.

“In the 21st century, with solar, wind and battery technologies becoming the world’s cheapest forms of power generation, Japan is resource-rich,” Kaberger said.

The military said naval ships were deployed to accompany commercial vessels to ensure the uninterrupted flow of national energy supplies and maintain the security of sea lines of communication, which are critical for the country’s economy.

The escort operation was launched to counter what the military described as “multidimensional threats” to national shipping and maritime commerce. Pakistan relies heavily on sea routes for trade, with the armed forces noting that roughly 90 percent of the country’s commerce moves by sea.

Officials said maintaining secure maritime corridors was essential to ensuring the continuity of energy imports and broader economic stability.

Pakistan, which shares a border with Iran in its southwest, depends significantly on oil and gas supplies from Gulf producers.

Amid concerns about supply disruptions linked to the regional conflict, the government raised domestic fuel prices by about 20 percent last week, triggering long lines at petrol stations across the country.

Prime Minister Shehbaz Sharif on Monday announced a series of austerity measures aimed at conserving fuel, including closing government offices one day a week and directing half of public-sector staff to work from home.

Authorities also ordered schools to shut for two weeks as part of the effort to reduce fuel consumption and limit transport demand.

The military said naval forces remained fully prepared to respond to emerging maritime security challenges but did not provide further details about the scope or duration of the escort operations.

The move comes as heightened tensions across the Gulf region raise concerns among energy importers about potential disruptions to shipping routes and oil supplies.

The appeal was issued by the Ministry of Industry and Trade Vietnam, which cited a report highlighting the country’s vulnerability to supply shocks because of its heavy reliance on imported energy from the Middle East.

The ministry said companies should “encourage work-from-home when possible to reduce the need for travel and transportation,” according to a government statement.

Energy prices have risen sharply across Vietnam since the conflict escalated at the end of last month. Data from fuel trader Petrolimex showed gasoline prices have climbed 32%, while diesel has risen 56% and kerosene 80%.

The surge has prompted visible shortages in some areas. Long lines of cars and motorbikes were seen queuing at petrol stations in the capital, Hanoi, on Tuesday.

Authorities also urged businesses and consumers not to hoard or speculate on fuel supplies as the government works to stabilise the market.

Prime Minister Pham Minh Minh held calls on Monday with leaders in Kuwait, Qatar and the United Arab Emirates to secure additional supplies of crude oil and refined fuels.

Vietnam also decided on Monday to remove import tariffs on fuel products until the end of April in an effort to ease price pressures and ensure adequate supply for businesses and households.