Japan rushes to rescue Philippines from oil crisis

Japan will help the Philippines build up its oil reserves. The Southeast Asian nation depends heavily on fuel shipped through the Strait of Hormuz, a narrow waterway between the Persian Gulf and the Gulf of Oman. The strait is a global choke point. About one-fifth of the world's oil passes through it. Any conflict or blockade there could cut off fuel supplies to countries like the Philippines. Japan will provide funding and technical support to expand Philippine oil storage. The goal is to keep more fuel on hand in case of an emergency. The Philippines imports most of its oil. It has limited storage capacity, leaving it vulnerable to supply shocks. Japan relies on the same sea routes for its own energy needs. Helping the Philippines secure its fuel supply also protects Japan's regional interests. The two countries are expected to sign a formal agreement in the coming months.