Japan’s Trade Deficit Doubles as Hormuz Crisis Hikes Energy Import Costs

Summary

Japan's trade deficit nearly doubled to $17.8 billion between April and September due to a hypothetical crisis in the Strait of Hormuz choking oil and LNG supply. The event caused energy import costs to surge even as volumes fell, highlighting the extreme vulnerability of the G7 nation, which previously sourced over 90% of its crude via the strait. The crisis has forced Japan to seek alternative supplies and participate in an IEA-coordinated release of strategic reserves.