US-Iran Conflict Wreaks Economic Havoc on Japan

The US war on Iran has caused significant economic strain on Japan, driving up oil and shipping costs due to its reliance on imports from West Asia. The Strait of Hormuz, through which most of Japan's oil is shipped, has been disrupted by the conflict.

This has led to a sharp increase in the cost of oil, which is priced in dollars, making every barrel even more expensive for Japanese consumers. As a result, workers are facing higher prices for food, fuel, and daily necessities, with their pay failing to keep pace for four years running.

The damage is also being felt by Japan's banks, which have invested heavily in government bonds that are now worth less due to the country's rising borrowing costs. The Bank of Japan is caught between raising interest rates to slow the yen's fall and keeping them low to avoid further devaluing the bank-held bonds.