Japan Considers Supplementary Budget Amid Middle East Tensions

Japanese Prime Minister Sanae Takaichi stated on Tuesday that Japan might prepare a supplementary budget for the fiscal year 2026 if conflicts between the United States, Israel, and Iran persist. According to Jin10, Takaichi mentioned that the possibility of such a scenario is not zero if the situation prolongs. She noted that the current Middle East tensions are not expected to immediately increase electricity and gas bills. The government has not yet decided whether to extend the existing subsidies for water, electricity, and gas, which are applicable from January to March this year. Regarding the import of liquefied natural gas (LNG) through the Strait of Hormuz, Takaichi explained that this accounts for about 6% of Japan's total LNG imports. If stable supply is affected, Japan will secure alternative supplies from other exporting countries or the spot market. During a budget committee meeting, Takaichi urged opposition parties to cooperate in ensuring the fiscal year 2026 budget draft is approved before the end of the current fiscal year.