Surging Oil Prices Push Japan’s Import Bill to an Unprecedented High

Japan's import bill hit an all-time high of $89.46 billion in June, driven by surging oil prices. The total was 25.4% higher than a year earlier, as international oil prices rose over 50% in the past 12 months. Despite a 13.7% drop in import volumes, the value of oil imports surged 59.3%. Japan, heavily reliant on Middle Eastern oil, is diversifying its sources, increasing purchases from the United States, Russia, Azerbaijan, and South Sudan. Traffic through the Strait of Hormuz remains 90% lower than before March 2026. The Bank of Japan is expected to leave rates unchanged but extend tightening due to rising energy costs and inflation fears.