As conflict in the Middle East drags on, shortages of naphtha — a key raw material used in a wide range of petroleum-based products — are beginning to affect even Japan's traditional cheap snacks, with manufacturers facing steep rises in packaging and material costs while trying to keep products affordable for children.

Japanese Prime Minister Sanae Takaichi received an elaborate welcome during her visit to South Korea on May 19th as the leaders of Japan and South Korea agreed to strengthen cooperation in energy security and continue their “shuttle diplomacy” amid growing instability in the Middle East.

As the prolonged disruption of shipping through the Strait of Hormuz continues to strain global energy markets, differences are emerging between how Japan and South Korea are responding to the growing risk of fuel shortages and rising prices.

Japan’s GDP, or gross domestic product, expanded at an annualized rate of 2.1% from January to March 2026, marking a second consecutive quarter of positive growth as exports and consumer spending supported the economy.

The worsening situation in the Middle East is beginning to affect Japan’s automotive sector, with shortages of engine oil and other lubricants emerging alongside rising prices, creating mounting pressure across the industry.

Free roll-type plastic bags once available to shoppers at supermarkets are being removed one after another as shortages of naphtha, a petroleum-derived raw material used in plastic production, spread across Japan amid ongoing tensions in the Middle East.

Japan’s corporate goods prices rose 4.9% in April from a year earlier, far exceeding market expectations as soaring crude oil prices linked to tensions in the Middle East pushed wholesale inflation to its highest level in nearly three years.

Kagome announced on May 14th that it will temporarily redesign several ketchup products by reducing printed packaging areas and adopting mostly transparent labels as worsening tensions in the Middle East continue to disrupt supplies of white ink and other petroleum-based packaging materials across Japan.

The impact of Japan’s growing naphtha shortage is spreading across a widening range of industries, raising concerns about manufacturing, logistics, and even daily consumer life.

ENEOS Holdings announced that a tanker operated by one of its group companies has successfully passed through the Strait of Hormuz in the Middle East.

The “ink shock” caused by tensions in the Middle East is beginning to spread across Japan’s food packaging industry, prompting manufacturers to simplify designs and reduce ink usage as concerns grow over naphtha supplies and rising printing costs.

A tanker carrying approximately 45,000 kiloliters of crude oil from Azerbaijan arrived in Japan on May 12th, marking the first time Azerbaijani crude has reached the country as the effective blockade of the Strait of Hormuz continues.

Major snack manufacturer Calbee will switch the packaging of some of its products to black-and-white designs as instability in the Middle East disrupts the procurement of printing ink and other materials.

The Nikkei Stock Average reversed early gains and closed 295.77 points, or 0.4%, lower at 62,417.88 on May 11 after surging more than 1,600 points earlier in the day, as selling spread across AI-related and semiconductor shares despite record highs in the U.S. Nasdaq and Philadelphia Semiconductor Index, while concerns over Middle East tensions and U.S. interest rate policy weighed on investor sentiment.

Toyota Motor has become the first Japanese company to surpass 50 trillion yen in annual revenue, although the automaker expects profits to decline this fiscal year due to the impact of Middle East tensions and U.S. tariff policies.

A discount supermarket chain known for its ultra-low prices has raised the price of kaiware radish sprouts for the first time in 34 years, as worsening tensions in the Middle East continue to drive up oil-related costs and disrupt supplies of plastic products across Japan.

Rising tensions in the Middle East are beginning to affect not only fuel and transportation costs, but also the prices of everyday foods ranging from cooking oil and fish to onions, with experts warning that the impact could continue for at least another year even if fighting comes to an end.

The Nikkei 225 surged sharply in Tokyo trading on May 7th, rising more than 3,300 points to close at 62,833.84 yen, marking both the largest gain in its history and the first time the index has finished in the 62,000 range, as buying orders spread rapidly from the opening bell following the Golden Week holidays and continued to build throughout the session.

Prime Minister Takaichi returned to Japan after visits to Vietnam and Australia during the Golden Week holidays, securing agreements with both nations to strengthen supply chains for critical minerals and enhance cooperation on energy security, as Tokyo seeks to counter China’s economic pressure and navigate instability in the Middle East.

A tanker carrying Russian crude oil arrived off the coast of Imabari in Ehime Prefecture on the morning of May 4th, marking the first such import since the United States launched an attack on Iran and reflecting a government-led effort to diversify energy procurement sources.

As Japan’s Cabinet ministers fan out across the globe during the Golden Week holiday period, Prime Minister Takaichi’s visits to Vietnam and Australia have drawn attention for their carefully calculated strategic significance, revealing a diplomatic push centered on securing resources, strengthening supply chains, and expanding human capital ties.

Prime Minister Takaichi, visiting Australia on May 4th, held talks with Prime Minister Anthony Albanese and announced a joint declaration on economic security cooperation that includes strengthening supply chains for energy and critical minerals, as Japan’s cabinet approval rating rose to 74%.

Japan began a second round of releases from its national oil reserves on May 3rd, as the government moves to stabilize energy supplies following escalating tensions in the Middle East that have effectively shut down the Strait of Hormuz.

The Japanese government has emphasized that sufficient supplies are secured, but escalating tensions in the Middle East are beginning to ripple across Japan’s Golden Week holiday period, affecting not only fuel prices but also tourism and agriculture in unexpected ways.

An Idemitsu Kosan crude oil tanker has safely passed through the Strait of Hormuz, becoming the first vessel bound for Japan to do so since attacks on Iran heightened tensions in the region and effectively disrupted maritime traffic.