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

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