Escalating tensions in the Middle East and renewed disruptions around the Strait of Hormuz could cost Japan more than ¥7 trillion in additional energy expenses this year if the crisis persists, according to a new analysis by climate advocacy group 350.org.
The report estimates that higher oil and gas prices since the outbreak of the Iran conflict have already imposed an additional US$18.75 billion burden on Japan.
Even if the Hormuz crisis eases quickly, Japanese consumers are still expected to face more than ¥4 trillion in extra energy costs by the end of 2026.
The warning comes as Brent crude oil has climbed back above US$100 per barrel, driven by renewed US-Iran hostilities and disruptions to Saudi oil shipments linked to Houthi attacks in the Red Sea.
At a press briefing, 350.org urged Japanese Prime Minister Sanae Takaichi to reconsider plans for new oil and gas investments, including projects in the United States, and instead accelerate investments in domestic renewable energy and energy-efficiency measures.
The organization argued that Japan’s heavy reliance on imported fossil fuels leaves its economy highly vulnerable to geopolitical shocks and volatile global energy prices.
