Japan Crude Imports Recover in July with Greater Reliance on US Oil
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.
Japan's crude oil imports increased by 5.5% in July 2025, reaching 12.1 million kiloliters, marking the first rise since March 2025. This rebound follows a decline in imports due to US and Israeli attacks that triggered a war with Iran on February 28, 2025. The key driver behind the increase is Japan's growing reliance on US oil to compensate for the Middle East shortfall.
US oil imports surged to 4.4 million kiloliters in July, nearly nine times higher than the previous July. This shift brings US oil imports to 36.3% of total imports, nearing the 59.3% share previously from the Middle East. Prior to the Iran conflict, Japan sourced over 90% of its oil from the Middle East. Prime Minister Takaichi Sanae has advocated for alternative oil sources to replace the reduced Middle East imports, and Japan's monthly crude imports have now returned to last year's levels.
However, the cost of imports has surged. In July 2025, crude oil imports cost ¥1.4 trillion, an 87.8% increase compared to the same month in 2025. The unit price of imported crude oil is also 78% higher than in July 2025. US oil shipments face longer routes and transit times, contributing to higher costs. While US and Middle Eastern crude oil prices were similar in July, US oil was about 10% pricier from April to June.
Ongoing tensions in the Strait of Hormuz are driving up surcharges, including tanker freight and insurance costs. Experts predict US crude prices will rise further in August.
Written by urgent.news from Nippon.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
