Prime Minister Sanae Takaichi attended the central May Day rally organized by the Japanese Trade Union Confederation, known as Rengo, and called for cooperation in achieving sustained wage increases that outpace inflation, as concerns grow over rising prices amid worsening tensions in the Middle East.

The Bank of Japan decided to leave interest rates unchanged, opting against an additional rate hike for now, after its monetary policy meeting concluded earlier with a majority vote to maintain the policy rate at 0.75%, marking the third consecutive meeting at which rates were left unchanged.

International passenger traffic at Kansai Airport reached a record high of 27.08 million in fiscal 2025, up around 2 million from the previous year and highlighting strong demand for overseas travel across western Japan.

The impact of the effective closure of the Strait of Hormuz is spreading to Japan's export industries, dealing a fresh blow to automakers and other companies reliant on Middle East trade routes.

The Nikkei Stock Average rose by more than 1,100 points at one stage in trading on the Tokyo Stock Exchange on Monday. Following gains in semiconductor-related shares on the New York market on June 24, buy orders flowed into AI and chip-related stocks in Tokyo, lifting the Nikkei back above the 60,000 level.

Prolonged tensions in the Middle East are beginning to affect everyday vegetables in Japan, with tomato farmers facing higher costs and shortages of packaging materials.

Japan has reduced refinery operating rates as it scrambles to secure alternative crude supplies following disruptions to shipments through the Strait of Hormuz, underscoring the growing strain on one of Asia’s most import-dependent energy markets.

American crude oil secured as an alternative supply source has arrived in Japan for the first time, as the de facto closure of the Strait of Hormuz makes procurement from the Middle East increasingly difficult.

All Nippon Airways is considering introducing a fuel surcharge on domestic flights as early as the next fiscal year, amid surging fuel costs driven by tensions in the Middle East.

Wakayama Prefecture held talks with local fisheries cooperatives after concerns grew that fishing boats may be unable to put to sea because fuel supplies have been disrupted by tensions in the Middle East.

The approval rating for the cabinet of Prime Minister Sanae Takaichi rose 3.1 percentage points from March to 70.2%, recovering to the 70% range for the first time in two months, according to an FNN public opinion survey.

A shortage of naphtha, a key petrochemical feedstock used in a wide range of products, is pushing up the cost of housing materials in Japan and raising concerns that home prices could climb by as much as 30%.

TOTO said on April 16 that it will gradually resume new orders for its unit bath products from April 20 after securing a clearer outlook for raw material procurement.

Spending by foreign visitors to Japan from January to March rose 2.5% from a year earlier to 2.3378 trillion yen, the Japan Tourism Agency said, marking the third-highest quarterly total on record, while the number of inbound visitors in March increased 3.5% to 3,618,900, setting a new record for the month.

Japan will release around 50 million stockpiled medical gloves from next month as concerns grow over shortages of medical supplies linked to tensions in the Middle East, Prime Minister Sanae Takaichi said.

Tokyo’s and Osaka’s flagship theme parks are both marking their 25th anniversaries this year, raising expectations that milestone celebrations could provide a boost to visitor numbers and earnings.

As tensions in the Middle East continue, 42 vessels linked to Japan remain stranded in the Persian Gulf, raising concerns over supply chains for naphtha, a key raw material used in plastics and coatings, with manufacturers warning that prolonged disruptions could drive up prices for everyday goods and housing materials.

Bank of Japan Governor Kazuo Ueda warned on April 14th that rising crude oil prices driven by escalating tensions in the Middle East could act as a drag on Japan’s economy, signaling growing concern within the central bank over external cost pressures.

Crude oil futures surged sharply as concerns over supply disruptions intensified amid renewed uncertainty surrounding the situation in Iran, pushing prices above $105 per barrel on April 12th and driving Japan long-term interest rates—represented by the benchmark 10-year government bond yield—to their highest levels in nearly three decades.

More than 80% of companies in Japan’s Kyushu and Okinawa regions say they are experiencing negative impacts from the ongoing situation in the Middle East, according to a survey released by Tokyo Shoko Research on April 13th.

A growing shortage of products derived from naphtha is beginning to affect everyday industries, as instability surrounding supply routes linked to tensions involving Iran raises concerns across Japan’s economy.

Heavy oil prices have doubled over the past six months, placing mounting pressure on Japan’s green tea producers and transport sectors as Prime Minister Sanae Takaichi announced on April 10th that the government will release an additional 20 days’ worth of national oil reserves in an effort to ease supply bottlenecks.

FamilyMart reported record earnings for the fiscal year ending February 2026 on April 8th, with operating profit rising 18% from a year earlier to 100.2 billion yen, driven by strong sales of rice balls promoted through advertising featuring Shohei Ohtani and successful food portion increase campaigns.

Rising tensions in the Middle East are raising concerns over potential disruptions to medical supplies in Japan, particularly due to uncertainty surrounding naphtha used in products such as gloves and gowns, with hospitals warning that a halt in supply could significantly impact medical care while authorities move to reassure that stockpiles are sufficient for the time being.

Prime Minister Sanae Takaichi said on April 6th that Japan is making arrangements for separate high-level talks with Iran in response to the worsening situation in the Middle East, as a deadline for negotiations set by U.S. President Donald Trump approaches.