Energy Shock Response: Japan’s Cabinet approved a 3.11 trillion yen (about $19.5bn) emergency extra budget to blunt Iran-war-driven fuel and utility costs, including subsidies to cap gasoline and help households with gas and electricity bills. FX & Rates Watch: The yen slid toward the 160 per dollar level as Gulf tensions boosted the dollar; meanwhile JGB yields rose across the curve on renewed BOJ hike expectations. Food Policy: Japan is moving to a 1% consumption tax rate for groceries starting next April (not zero), citing a roughly year-long systems overhaul hurdle for a full cut. Markets & Tech Momentum: The Nikkei topped 68,000 for the first time, led by AI-linked semiconductors and chip equipment, even as Middle East worries linger. AI for Finance Security: Anthropic will expand access to its Claude Mythos model, with Japan’s finance ministry and major banks among the new users for network checks and vulnerability fixes. Industrial Dealmaking: Apollo completed its sale of Altemira Holdings to MBK Partners, signaling continued foreign PE interest in Japan’s aluminum packaging and recycling chain. Local Governance: A mosque in Kawagoe, Saitama, built without required permits has been ordered removed after a diplomatic controversy involving Pakistan’s ambassador. Agri-Tech Breakthrough: Japan began trial sales of fully farmed eels, aiming to cut reliance on wild juvenile eel supply.