Elevated Oil Prices Push Japan’s Imports to an All-Time High

Japan's import bill hit an all-time high in July 2025, totaling $76.39 billion, according to Reuters, citing data on imports and exports. This was a 27.8% increase from the previous July, driven by rising oil prices. Crude oil imports saw a modest 5.5% rise in volume, but a significant 87.8% increase in price, breaking the previous record set in June.

Analyst Koki Akimoto from Daiwa Institute of Research explained that the combination of higher crude volumes and persistently high oil prices, particularly U.S. crude, has pushed up the value of imports. Japan relies heavily on energy imports, with around 90% of its crude oil coming from the Middle East before tensions between Iran and the U.S. escalated at the end of February.

Since then, Japan has sought to diversify its suppliers, purchasing oil from countries like Nigeria, Angola, South Sudan, Azerbaijan, the U.S., and Canada. While this has helped maintain oil supply security, it has also led to growing concerns about inflation. Analysts predict that the situation is unlikely to improve as long as there's a threat of a prolonged war between Tehran and Washington, given the current lack of fresh momentum in oil prices amidst sporadic attacks in the Middle East.