Japan Slides into Fourth Month of Trade Deficit Amid Soaring Oil Prices

Japan's trade deficit widened for the fourth consecutive month in August, reaching 1.1 trillion yen ($7 billion), according to preliminary data from the Finance Ministry.

The country's reliance on imported oil and soaring prices due to conflicts in the Middle East drove up costs, with imports rising 28% year-over-year to 11.15 trillion yen ($71.9 billion) last month.

Japan relies heavily on foreign oil, importing nearly all of its supplies. The Strait of Hormuz, a key shipping route, has seen reduced traffic due to the Iran war stalemate, further exacerbating the situation.