Japan’s crude oil imports saw a major drop in April 2026, but recovered in July due to a greater share of imports from the United States. However, the unit price in July rose 78% compared with the same month last year.
Big Increase in US Share
July’s trade statistics show that Japan’s crude oil imports rose 5.5% year on year to 12.1 million kiloliters, in the first increase over the same month in 2025 since March. The recovery comes after a drop in imports following US and Israeli attacks that instigated war with Iran on February 28 this year.
The main factor behind the recovery is Japan’s switch to importing US oil to make up for the shortfall from the Middle East. According to the July trade statistics, imports from the United States rose to 4.4 million kiloliters, more than nine times the amount in July 2025. At 36.3% of total imports, this is closing in on the Middle East share of 59.3%. Before the war in Iran, Japan depended on the Middle East for more than 90% of its oil imports.
Prime Minister Takaichi Sanae has consistently indicated a policy of finding alternative sources to cover the drop in crude imports from the Middle East, and the monthly volume has finally recovered to last year’s levels. However, oil has become more expensive. The crude oil import value for July rose 87.8% year on year to ¥1.4 trillion, and the unit price is 78% higher than in July 2025.
Imports from the United States involve longer tanker routes and transit times to Japan, adding to costs. While the unit import price was around the same for US and Middle Eastern oil in July, US oil was on average around 10% more expensive from April to June. Meanwhile, even though the price of Dubai crude has settled, ongoing tensions around the Strait of Hormuz continue to push up surcharges, such as tanker freight rates and insurance premiums.
Among market observers, the prevailing view is that while US and Middle Eastern crude were around the same price in July, US crude will become more expensive from August.
Data Sources
(Translated from Japanese. Banner photo © Pixta.)
