May Trade Deficit Returns as Crude Oil Import Costs Hit Record High

Jun 17, 2026 | News On Japan

TOKYO - Japan's trade balance fell into the red for the first time in four months in May, as soaring crude oil procurement costs linked to tensions in the Middle East pushed import prices to record levels despite a sharp decline in import volumes.

According to trade statistics released by the Ministry of Finance, Japan recorded a trade deficit of 378.6 billion yen in May, with imports exceeding exports.

The data showed that crude oil imports from around the world dropped 57.3% compared with May last year, reflecting the effective closure of the Strait of Hormuz, a key shipping route for energy supplies from the Middle East.

Despite the steep decline in import volumes, the unit price of imported crude oil surged 67.2% in yen terms from a year earlier, reaching the highest level on record. The sharp increase highlights the growing cost burden of securing energy supplies as instability in the Middle East continues to affect global oil markets.

The figures also indicate that Japan has been seeking alternative sources of supply. Crude oil imports from the United States increased 24% from a year earlier, while imports of gasoline, much of which is derived from crude oil-based naphtha, jumped 569.6%.

The shift underscores Japan's efforts to diversify energy procurement as higher transportation and sourcing costs weigh on the country's trade balance.

Source: TBS

Typhoon No. 26 Weakens Near Izu Islands as No. 27 Gathers Strength

Typhoon No. 26 was passing through the southern Izu Islands on October 1, disrupting ferry and air services around Hachijojima even as authorities reported no confirmed damage, while a newly formed Typhoon No. 27 was forecast to strengthen and potentially affect the Ogasawara Islands next week.

First Emergency Bear Shooting Carried Out in Tokyo

Tokyo authorities carried out the capital's first emergency shooting of a captured bear in Hachioji after an adult Asiatic black bear was found caught in a trap near a residential area about 8 kilometers from Takao Station.

Japan's Population Falls to 122.97 Million

Japan's total population, including foreign residents, stood at 122.97 million as of October 1, 2025, down 3.17 million from the previous census in 2020, marking only the third decline since the national census began in 1920.

World’s First iPS Cell Heart Surgery Performed in Osaka

A woman in her 50s with severe heart failure underwent what was described as the world's first surgery using commercially available iPS cell-derived heart muscle sheets at an Osaka hospital on September 29, marking the first practical use of the regenerative treatment.

Tokyo Sets All-Time Record With Rain for 34 Straight Days

Tokyo recorded rain for a 34th consecutive day on September 29, setting a new all-time record for the capital, but the prolonged wet spell could finally end after Typhoon No. 26 passes the Izu Islands between the night of September 30 and the morning of October 1.

MEDIA CHANNELS

MORE Oil Crisis NEWS

Can Japan Break Free From Middle East Oil

Japan is unlikely to end its heavy reliance on Middle East crude oil, even as geopolitical tensions expose the risks of depending on the region for more than 90% of its imports, leaving the country to pursue a gradual mix of diversification, electrification, renewable energy and technological innovation.

Mexican Crude Oil Arrives in Japan After 70-Day Voyage

A tanker carrying about 1 million barrels of Mexican crude oil arrived off Yokkaichi, Mie Prefecture, on the morning of July 17, marking Japan's first such delivery since the Strait of Hormuz was effectively closed.

Thinner Prices More Than Double as Naphtha Shock Eases but Costs Bite

Marutake Tosou, a painting company founded about 50 years ago in Nagoya’s Nishi Ward, handles exterior walls and other building projects. Its workshop is lined with cans of thinner, an essential material used for sanding products and diluting paint, but at the end of April the company was struggling to secure supplies.

Dental Clinics Face Higher Costs From Naphtha Shock

Dental clinics are facing higher costs for gloves, masks and other supplies made from naphtha-derived materials, even as shortages ease following renewed conflict in the Middle East that has disrupted naphtha supplies.

Crude Falls Toward Earlier Levels As Household Costs Keep Climbing

Crude oil prices have plunged to the low $70 range per barrel following the signing of a memorandum aimed at ending fighting between the United States and Iran, but while the immediate risk of an energy crisis appears to have eased, economists warn that price increases for electricity, food and everyday goods may still be about to intensify.

Japan Moves to Ease Thinner Shortage as Naphtha Shock Hits Builders

Japan will begin a new system on June 23 to sell paint and thinner directly from manufacturers to construction firms and other businesses, aiming to ease supply bottlenecks and curb price increases as worsening conditions in the Middle East make such materials harder to obtain.

Recycling Technology Takes On Naphtha Shortage

Japan's reliance on Middle Eastern crude oil has left manufacturers exposed to rising costs for plastic containers, ink and other products that use naphtha, but JEPLAN President Masaki Takao is pushing a recycling technology that could reduce the need for petroleum-derived raw materials by turning used plastic back into material close to new.

Middle East Tensions Hit Local Rice Balls

A rice ball chain based in Yokkaichi, Mie Prefecture, is feeling the effects of turmoil in the Middle East through higher costs and supply shortages for packaging film and other materials essential to selling onigiri.

< 2 3 4 5 >