Gotrade News - The blockade of the Strait of Hormuz by Iran's Islamic Revolutionary Guard Corps has impacted the global energy market, including Japan. Crude oil prices have surged following attacks on Iran by the United States and Israel. The Japanese government asserts that their energy supplies are secure, but an increase in crude oil prices is unavoidable.
Key Takeaways:
- Global crude oil price rise is driven by Middle East conflicts.
- Gasoline prices in Japan are expected to strengthen this week.
- If prices remain high, electricity and gas tariffs may rise within 5-6 months.
Before this recent conflict, gasoline prices in Japan were around 157.1 yen per liter. Now, with the rise in oil prices, gasoline prices are expected to increase by about 3 yen in the near future. This could reverse the drop in prices seen after the removal of a temporary 25 yen tariff.
Japan relies on the Middle East for 93% of its oil supplies. If tensions do not ease, not only gasoline prices but also electricity and gas tariffs could rise. Japan's energy market continues to monitor the situation as most of its oil passes through the now-blocked Strait of Hormuz.
The Japanese government also hopes that tensions can be resolved through peaceful dialogue. They support a two-state solution between Israel and Palestine as part of efforts to bring peace to the Middle East. This solution is predicted to impact regional stability and prosperity.
However, if the conflict prolongs, Japan is also preparing for potentially rising energy prices. While the short-term impact may not be significant, long-term price increases could pressure household spending and the national economy.
Reference:
- Bloomberg, Japan Isn't Sending Minesweepers to Middle East, Takaichi Says. Accessed on March 12, 2026
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