Energy Security at G7: PM Sanae Takaichi will propose three principles for global energy security at next week’s G7 in France—free and transparent energy trade, bigger strategic oil reserves, and tighter cooperation between oil producers and consumers—amid Middle East-driven supply worries. Markets & Business Mood: Japan’s business sentiment for April–June slipped into negative territory for the first time in four quarters as Middle East-linked material costs bite; Tokyo stocks also closed mixed as investors weighed renewed Iran-related tensions. Crypto Policy Shift: Japan’s Lower House approved a bill to reclassify crypto as financial products, cutting capital gains tax on coins (including Bitcoin and Ether) from up to 55% to 20% and paving the way for crypto ETFs. China Export Controls Pressure: Japanese firms in China are urging Beijing to improve transparency around dual-use export controls, saying rare-earth curbs are disrupting even civilian supply chains. Rare Earth Supply Push: Shin-Etsu Chemical plans a new rare-earth refining facility in Fukui, seeking to reduce reliance on China as export restrictions tighten. Regional Security Signals: The U.S. reactivated Submarine Squadron 3 in Western Australia under AUKUS to strengthen allied undersea deterrence across the Indo-Pacific. Defense Sales: The U.S. approved a $292M AMRAAM missile sale to South Korea, boosting Seoul’s air-defense interoperability. Diplomatic Remembrance: China offered condolences over the death of former LDP Lower House speaker Yohei Kono, recalling his 1993 “comfort women” apology.