Japanese local governments and banks are stepping in to support small businesses affected by the Middle East conflict, Nikkei Asia reported on Wednesday, citing farmers and business owners.

The local governments are offering businesses cash-flow assistance and easing loan repayment conditions to protect regional economies, the news agency said.

A strawberry grower in Kumamoto Prefecture, in southern Japan, reported that surging crude oil prices are driving up production expenses, the publication said.

The cost of heavy oil needed to regulate temperatures inside plastic greenhouses has climbed 20% since the start of the year, while plastic sheeting and other materials have jumped nearly 40%, severely squeezing farm profitability, the report said.

The farmer noted that heavy fuel oil, which usually costs around 100 yen per liter, spiked to as high as 136 yen before settling near 120 yen, amid the surge in global oil prices, it added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)