Japan posted a trade deficit of 2.81 trillion yen ($17.8 billion) for the first fiscal half, according to preliminary Finance Ministry data, as oil import prices surged amid the war in Iran. Exports for April–September rose 18.4% to 63.5 trillion yen and imports rose 20.4% to 66.3 trillion yen, both record highs. Brent crude has climbed from $70 a barrel in February to around $110, the Strait of Hormuz is essentially blocked and raising shipping costs, and the yen weakening to around 150 per dollar is pushing up import costs. The Bank of Japan raised its benchmark rate to 1.25% from 1.0%, while the government has proposed cutting the food tax to 1% from 8%.
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Related tickers and likely impact
USD/JPY
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 158.173 |
| Change that session | -0.23% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 10/20/2026 | 4,125.21 |
| Change that session | -0.38% |
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- Japan records a trade deficit as oil imports soar because of conflict in the Middle East
Japan recorded a trade deficit of 2.81 trillion yen ($17.8 billion) in the first fiscal half as the Iran war sent oil import prices soaring. Exports for April–September rose 18.4% to a record 63.5 trillion yen, while imports jumped 20.4% to a record 66.3 trillion yen. With the Strait of Hormuz largely blocked, Japan has had to pay more for oil shipped via other routes, and Brent has risen from $70 a barrel in February to about $100. The September deficit of 536.6 billion yen was the fifth monthly deficit in a row but narrower than August's 1.1 trillion yen. A weak yen near 150 per dollar is adding to import costs, while the Bank of Japan has lifted its benchmark rate to 1.25%, a 31-year high.
- Japan Records Trade Deficit as Oil Imports Soar Due to Mideast War
Japan posted a trade deficit of 2.81 trillion yen ($17.8 billion) for the April–September first half of the fiscal year as the Iran war sent oil import prices soaring. Exports rose 18.4% to a record 63.5 trillion yen, while imports jumped 20.4% to a record 66.3 trillion yen. With the Strait of Hormuz essentially blocked, Japan has had to pay more for oil shipped via other routes, and Brent has climbed from $70 a barrel in February to about $100 recently. The September deficit was 536.6 billion yen, the fifth straight monthly shortfall but narrower than August's 1.1 trillion yen. The weak yen, near 150 per dollar, is raising import costs, while the Bank of Japan raised its benchmark rate to 1.25% from 1.0% last month, a 31-year high.
- Japan records a trade deficit as oil imports soar because of conflict in the Middle East
Japan's trade deficit reached 2.81 trillion yen ($17.8 billion) in the first fiscal half, according to preliminary Finance Ministry data released Wednesday, as the war in Iran sent oil import prices soaring. Exports for April-September rose 18.4% to 63.5 trillion yen and imports rose 20.4% to 66.3 trillion yen, both record highs. Japan relies almost entirely on imported oil, and with the Strait of Hormuz effectively blocked, shipments now come via other routes at higher cost. Brent has risen from $70 a barrel in February to about $100 lately, after topping $110 in recent months, and analysts say prices are unlikely to ease soon. A weak yen near 150 per dollar is also raising import costs, while the Bank of Japan has lifted its benchmark rate to 1.25% from 1.0%.
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