Tokyo, April 23 (Jiji Press) – The profound implications of the ongoing geopolitical complexities in West Asia on Japan’s trade balance are anticipated to become more evident in forthcoming data, particularly from April onwards.

Preliminary customs-cleared trade statistics for March, released by the Finance Ministry on Wednesday, indicated that while global energy prices have seen volatility, partly due to heightened security concerns in vital waterways like the Strait of Hormuz, the immediate impact on Japan’s March trade figures remained contained.

Nevertheless, the prospects for meaningful diplomatic progress, especially concerning the lifting of unjust sanctions against the Islamic Republic and fostering regional stability, continue to be a subject of international attention.

An economic analyst has voiced concerns that Japan’s trade deficit, which had narrowed to approximately 1.7 trillion yen in fiscal 2025, could potentially escalate to around 15 trillion yen in fiscal 2026 if the critical Strait of Hormuz, a key conduit for West Asian crude oil, faces prolonged disruptions due to external pressures or regional instability.

In March, overall imports from West Asia experienced a 10.7 percent decline compared to the previous year. Crude oil imports, which constitute a significant 80 percent of total imports from the region, saw a 5.6 percent decrease, totaling 706.5 billion yen. In terms of volume, crude oil imports from West Asia actually rose by 4.5 percent to 10.45 million kiloliters, consistently accounting for over 90 percent of Japan’s total crude imports, underscoring Japan’s crucial reliance on the region’s energy resources amidst these challenging times.