By Megumi Fujikawa
TOKYO--Japan's imports grew at a faster pace last month as a war-induced oil shock drove up global energy costs, forcing the country to scramble for alternative supplies.
Imports climbed 12.5% in May from a year earlier, higher than April's 9.8% rise, government data showed Wednesday.
While the conflict in the Middle East shut off the Strait of Hormuz, reducing the volume of oil flowing through the shipping lane, the resulting surge in energy costs and pivot toward alternative procurement channels likely drove up Japan's import bill.
May's trade data showed that Japan's overall oil imports fell 28.5%, but those from the U.S. jumped 663.4%, suggesting progress in diversifying supplies.
Government efforts to secure alternative energy sources have helped temper the risk of a significant economic downturn, Bank of Japan Deputy Gov. Shinichi Uchida said Tuesday after the central bank raised its policy rate to a 31-year high to fend off inflationary risks.
Prime Minister Sanae Takaichi has said Japan can get enough crude--including national reserves and oil secured through non-Middle Eastern channels--to meet its needs until the end of March 2028.
Although an interim peace deal between the U.S. and Iran has raised hopes for a resolution to the conflict, Uchida cautioned that structural uncertainties remain over how quickly supply chains can fully recover.
Given that the restoration of oil infrastructure might take time, energy prices will likely stay high for now, driving a temporary surge in Japan's imports during the latter half of 2026, said Yasuhisa Irie, an economist at Mizuho Securities.
The energy turmoil could also soon start hitting Japan's exports, some economists say.
Despite the geopolitical headwinds, outbound shipments rose 17.0% on the year in May, accelerating from April's 14.8% rise, the government data showed.
However, Oxford Economics' Norihiro Yamaguchi said he expects export momentum to ease gradually.
"Higher energy prices are likely to weigh on the global economy and dampen demand for Japanese products," particularly capital goods not related to artificial intelligence, the economist said.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
June 16, 2026 22:13 ET (02:13 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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