The Japanese government on Wednesday approved a supplementary budget worth $19 billion to support households affected by rising living costs driven by the Iranian war.

The Prime Minister’s Office announced on its website that the additional budget “was approved” during a government meeting.

Government spokesperson Minoru Kihara said at a press conference that the Cabinet allocated 3.1135 trillion yen ($19 billion) for the package, adding: “Given the ongoing uncertainty in the Middle East, we have set this budget to minimize risks as much as possible.”

Flag of Japan.

He also said the government will closely monitor future price trends “so that citizens’ daily lives and economic activities are not affected.”

Prime Minister Sanae Takaichi stated last month that the supplementary budget would be used to ease the impact of rising prices of gasoline, electricity, and gas.

In May, Calbee, a leading potato chip manufacturer, replaced its colorful packaging for 14 products with gray packaging, with local media attributing the change to an ink shortage linked to the Middle Eastern war.

Takaichi said the government expects to secure stable oil supplies until next spring, adding that alternative supplies of naphtha, a by-product of oil used in various industries, from outside the Middle East have recovered to more than 80% of their previous levels.

In April, the Bank of Japan raised its inflation expectations and lowered its growth forecasts after the Iranian war sharply pushed up oil prices.