Tokyo is planning to expand its financial support to Japanese companies investing in pipeline projects overseas including the Middle East, as part of efforts to strengthen alternative oil and gas transportation routes in the Gulf region to bypass the Strait of Hormuz.

The initiative reflects growing concerns over the vulnerability of energy shipments passing through the narrow strait, which handles roughly 20% of global oil supply. By backing pipeline infrastructure that circumvent this chokepoint, Japan aims to enhance its energy security and reduce exposure to geopolitical disruptions.

Japanese trading houses and energy firms are expected to benefit from expanded credit lines and insurance coverage for projects linking Gulf producers to export terminals on the Arabian Sea or Red Sea coasts. The move aligns with broader government strategy to diversify supply chains amid regional tensions.