Japan recorded a trade deficit of 378.6 billion yen or about 2.4 billion US dollars in May. This is the first deficit in four months. A trade deficit means that the value of imports is greater than exports.
As reported by Kyodo News, Wednesday, June 17, the government's initial data released Wednesday showed Japan's crude oil imports fell 57.3 percent in volume amid the Middle East conflict.
The Japanese Ministry of Finance recorded exports rose 17.0 percent to 9.51 trillion yen. The increase was driven by demand for semiconductors, other electronic components, and motor vehicles.
However, imports also rose 12.5 percent from a year earlier to 9.89 trillion yen. According to Japanese Ministry of Finance data quoted by Kyodo, the increase in imports was triggered by the purchase of communication devices.
The Middle East conflict also disrupted transportation through the Strait of Hormuz. As a result, Japanese oil imports fell sharply to 4.73 million kiloliters.
The Strait of Hormuz is an important sea route for the world's energy shipments. When this line is disrupted, Japan accelerates the search for fuel from alternative sources, including the United States.
Kyodo reported that the move was made after the US-Israeli attack on Iran, which began on February 28, made the important shipping lane practically closed.
Japan's crude oil imports from the United States rose 24.0 percent to 576,000 kiloliters.
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