Japan’s Trade Deficit Doubles as Hormuz Crisis Hikes Energy Import Costs
Russia to Send First Diesel Tanker to U.S.
on Thursday Proposed renewable energy reforms threaten… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Japan booked a trade deficit of $17.8 billion (2.82 trillion Japanese yen) for April to September, almost double the deficit from a year earlier, government datashowedon Wednesday, as the Middle East crisis made energy imports into the resource-poor G7 economy much more expensive.
Between April and September, the period right after the Iran war began and choked oil and LNG supply at the Strait of Hormuz, the value of Japan’s exports rose by 18.4% while the value of imports jumped by 20.4%, according to the Finance Ministry’s provisional data for the first half of the fiscal 2026 year.
While the volume of petroleum imports fell by 21.2%, the value surged by 26.3%.
Petroleum product imports slumped by 26.8% in volume but rose by 23.2% in value.
LNG import volumes also fell by 8.4% from the same period last year, but the value of imports increased by 13.5%, the data showed, reflecting the surge in oil and LNG prices in the six months to September.
Japan’s oilimport billhas soared to record highs following the closure of the Strait of Hormuz – the G7 economy’s key import source before the war – the spike in crude oil prices, and skyrocketing freight and insurance costs.
In addition, Japan, one of the world’s biggest LNG importers, this summerreduced gas-fired generationin favor of coal as the price of liquefied natural gas remained elevated.
Since the war in the Middle East began, Japan has scrambled to secure crude oil supply from alternative sources as its dependence on crude from the Middle East passing through the Strait of Hormuz was more than 90% of all crude imports.
The G-7 economy has moved torelease crudefrom its strategic reserves as part of an IEA-coordinated global effort to release 400 million barrels of crude and oil products.
Earlier this month, the Japanese governmentapprovedthree bills to boost diversification of oil supplies and energy security, including grants to compensate Japan’s oil importers for the high shipping costs to procure supply from outside the Middle East.
Morgan Stanley: Global Fuel Market Will Stay Tight Through Mid-2027 Russia to Send First Diesel Tanker to U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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