TOKYO - Japan’s crude oil import prices surged to an all-time high in May as supply disruptions from the Strait of Hormuz closure reshaped global energy markets. Ministry of Finance data confirms customs-cleared prices hit 114,076 yen per kiloliter, surpassing records dating back to 1979.
While dollar-denominated prices reached $114.58 per barrel, the historic yen valuation reflects severe currency headwinds alongside geopolitical instability. These elevated costs for the Japan Crude Cocktail benchmark directly pressure domestic electricity rates by increasing expenses for thermal power generation and liquefied natural gas imports.
The crisis has triggered a dramatic contraction in trade volume. Crude imports plummeted 57.3 percent year-over-year in May, marking the steepest decline since 1980. This follows a 64 percent drop in April as maritime chokepoints became increasingly volatile.
A significant strategic pivot is now underway. Middle East shipments tumbled nearly 62 percent, dismantling Japan's traditional reliance on the region for 95 percent of its crude supply. Conversely, imports from the United States rose 24 percent to 576,000 kiloliters as Tokyo accelerates diversification efforts to secure energy stability amid ongoing conflict.