NewzTOKYO (AP) — Japan’s trade deficit totaled 1.1 trillion yen ($7 billion) last month as surging oil prices due to the conflicts in the Middle East sent the cost of imports soaring. It was the fourth straight month of red ink, according to the Finance Ministry’s preliminary data Wednesday. Resource-poor Japanimports virtually all its oil.
Previously that came mostly through the Strait of Hormuz, where traffic has been curtailed due the stalemated Iran war. Japan’s imports in August rose 28% from the same month a year ago to 11.15 trillion yen ($71.9 billion), as the price of oil soared. Japan’s exports rose 19.3% to 10 trillion yen ($64.5 billion), mainly in computer chips and autos.
By nation or region, Japan’s exports to the U.S. grew 24.9% from the previous year, while imports from the U.S. Japan’s exports to the Middle East declined 5.2%, while imports from that region fell 4.2%.
Japan’s exports to Europe edged up 11%, while imports gained 20.4%. The price of Brent crude has soared over the last year, from the upper $60 levels per barrel to more than $100. That reached as high as $118 a barrel in April.
and Japan might do on interest rates. Treasury Secretary Scott Bessent made remarks widely seen as prodding Japan’s central bank to raise interest rates, a move that would support the yen. The yen has fallen recently against the U.S.
dollar, although it briefly gained due to joint intervention by the U.S. The dollar is trading recently at about 155 yen. Some analysts are expecting it to fall to about or below 150 yen later this year.
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