Japan’s import bill reached an all-time high in July, driven by higher oil prices, to a total of $76.39 billion. This was up by 27.8% from July 2025, Reuters reported, citing import and export data.
In volume terms, Japan’s crude oil imports ticked up by 5.5% from a year earlier, but in price terms, the oil bill surged by 87.8%, breaking the previous record, set in June.
“The recovery in crude volumes, combined with persistently high oil prices and larger shipments of pricier US crude, has been pushing up the value of imports,” analyst Koki Akimoto from Daiwa Institute of Research said, as quoted by the publication.
Japan is heavily dependent on energy imports, with as much as 90% of its crude oil coming from the Middle East before the U.S.-Israel war with Iran began at the end of February.
Since then, Japan has moved to diversify urgently, buying crude from Nigeria, Angola, South Sudan, Azerbaijan, the United States, and Canada.
This has helped Japan maintain its oil supply security but has come at a cost and growing fears about inflation. These fears have been reinforced by the latest data, as the prospect of lower oil prices becomes increasingly remote amid mutual threats between Tehran and Washington, raising the chances of a prolonged war.
“Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation,” Nissan Securities analyst Hiroyuki Kikukawa said, as quoted by Reuters earlier today.
In the past couple of days, Iran threatened the U.S. with new attacks on its assets in the Middle East, President Trump for his part threatened an economic squeeze on the Islamic republic, and the UAE cut all trade ties with Iran after accusing it of launching missiles at its territory.
By Irina Slav for Oilprice.com
