Japan’s foreign minister urges diplomacy in call with Iranian counterpart

TOKYO – Japanese Foreign Minister Toshimitsu Motegi reiterated the importance of keeping the fragile ceasefire between Iran and the US in place in his latest phone call with Iranian counterpart Abbas Araghchi. 

“Japan supports, along with other countries, the diplomatic efforts towards a final agreement,” a government statement read.

Mr Motegi also highlighted the need to ensure the safety of navigation through the Strait of Hormuz in the 30-minute call held the evening of April 13, according to the statement.

The talks took place amid a spate of phone conversations both Mr Motegi and Prime Minister Sanae Takaichi are holding with countries in the Middle East and South-east Asia as disruptions caused by the effective closure of the Hormuz Strait reverberate through Asian economies and supply chains. 

Ms Takaichi announced US$10 billion (S$12.69 billion) in financial support for South-east Asian nations on April 15, in a bid to help them cope with soaring crude oil prices and shore up Japan’s supply chains.

Fuel shortages and supply disruptions in those nations would hinder Japan’s procurement of medical items like surgical gloves from the region, Ms Takaichi said. 

In another sign of the fallout, toilet maker Toto Ltd stopped taking orders for pre-fabricated bathrooms earlier this week as concerns mounted over interruptions in supplies of naphtha, a key item for plastic production.

Japan imports almost half of its naphtha from the Middle East.  

Mr Motegi also urged Iran to ensure the freedom and safety of navigation for all vessels passing through the Strait of Hormuz.

He called the strait an “international public good”, a comment that may suggest opposition to collecting tolls for safe passage. 

The reopening of the Hormuz has been a sticking point as the US and Iran negotiate a peace deal during a ceasefire set to expire next week.

Washington has set up a naval blockade to cut off Iranian shipments, while Tehran is keeping the strait closed to most other traffic, reducing transit through the crucial waterway to a trickle. 

The US and Iran are considering a two-week ceasefire extension to allow more time to negotiate a peace deal, according to a person familiar with the matter. 

The effective closure has been a blow for Japan, which relies heavily on the Middle East for its oil.

Ms Takaichi has pledged to diversify Japan’s oil supply and has overseen two releases of stockpiled oil to soften the domestic economic impact from the ongoing conflict. BLOOMBERG