Japan Suffers Fourth Consecutive Trade Deficit Amid Soaring Oil Prices

Japan recorded its fourth consecutive month of trade deficit in August, totaling 1.1 trillion yen ($7 billion), due to soaring oil prices and a significant increase in imports.

The Finance Ministry's preliminary data showed that Japan's imports rose 28% from the same month last year to 11.15 trillion yen ($71.9 billion), with the price of oil surging over the past year from around $60 per barrel to more than $100, reaching a high of $118 in April.

Japan's exports increased by 19.3% to 10 trillion yen ($64.5 billion), primarily driven by sales of computer chips and autos.

The trade deficit is largely attributed to Japan's reliance on imports due to its limited oil reserves, with the country importing almost all its oil, mostly through the Strait of Hormuz, where traffic has been disrupted due to the conflict in Iran.