Japan experienced a dramatic increase in the price of Saudi Arabian crude oil imports under long-term contracts, with prices rising more than 80% from February to March 2026. This surge is directly attributed to the Iran war, which has disrupted energy flows through the critical Strait of Hormuz, a major transit route for Middle Eastern oil exports [1]. Saudi Arabia remains Japan's primary crude oil supplier, accounting for 51% of the country's imports in February [1]. The situation is further exacerbated by the depreciation of the yen, which has intensified the financial impact of Middle East energy supply disruptions for Japanese importers, making crude oil imports even more expensive [1].
CONCLUSION
The sharp rise in Saudi crude import prices highlights Japan's vulnerability to geopolitical tensions in the Middle East and currency fluctuations. With Saudi Arabia supplying over half of Japan's crude oil, the ongoing Iran war and a weak yen are likely to continue pressuring Japan's energy costs and market stability.