Japan's Trade Deficit Widens Amid Soaring Oil Prices

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

The main culprit behind this deficit is the surge in oil prices due to conflicts in the Middle East, which have sent Japan's import costs soaring.

Japan imports almost all its oil, and with Brent crude prices having risen from around $60 per barrel last year to over $100, the country's trade balance has taken a hit.

Exports did rise 19.3% in August to 10 trillion yen ($64.5 billion), led by computer chips and autos, but imports surged even more at 28%, reaching 11.15 trillion yen ($71.9 billion).