Japan’s trade deficit reached 2.81 trillion yen ($17.8 billion) for the first fiscal half, according to government data released Wednesday, as the war in Iran sent oil import prices soaring.
The Finance Ministry’s preliminary data showed that Japan’s exports for the April-September period grew 18.4% from the same period the previous year to 63.5 trillion yen, while imports soared to 66.3 trillion yen, up 20.4% year-over-year.
Both were record highs for Japan. The soaring price of oil affects a wide range of sectors, including plastic goods and shipping costs.
Resource-poor Japan imports virtually all its oil and has relied on access to the Strait of Hormuz in the Middle East for its oil shipments. That’s now basically blocked, and Japan has had to pay more to get shipments from other routes.
Brent crude, the international standard, has soared from $70 a barrel in February to around $110 a barrel. Analysts say prices are unlikely to ease soon.
