Japan's Trade Deficit Widens as Oil Prices Soar Amid Middle East Tensions

Japan's trade deficit widened to 1.1 trillion yen ($7 billion) in August, marking its fourth consecutive month of red ink. The country's imports surged 28% from the same period last year due to soaring oil prices caused by Middle East conflicts.

The price of Brent crude has skyrocketed over the past year, jumping from around $60 per barrel to more than $100. In April, it briefly reached a record high of $118 a barrel.

Japan's resource-poor economy imports almost all its oil, and previous supplies mostly passed through the Strait of Hormuz, which has been disrupted due to the Iran war stalemate. As a result, Japan's imports from the Middle East fell 4.2% in August.

The country's exports rose 19.3% to 10 trillion yen ($64.5 billion) last month, driven by increased sales of computer chips and autos. However, this growth was offset by rising import costs, particularly for oil.