Japan Crude Imports Recover with Greater Reliance on US Oil

Japan's crude oil imports rebounded in July after a significant drop in April, according to the country's Ministry of Finance. The recovery was driven by a greater share of imports from the United States, which rose to 4.4 million kiloliters, more than nine times the amount in July 2025.

This marks the first increase in crude oil imports over the same month in 2025 since March, and represents a significant shift in Japan's reliance on US oil. Before the war with Iran, Japan depended on the Middle East for more than 90% of its oil imports.

The unit price of crude oil in July rose 78% compared to the same month last year, while the import value increased by 87.8% year-on-year to ¥1.4 trillion. The higher cost is attributed to longer tanker routes and transit times to Japan, as well as ongoing tensions around the Strait of Hormuz.

Market observers believe that US crude will become more expensive from August onwards, further increasing costs for Japanese importers.