Japan’s gasoline prices jumped 18% last week to a record ¥190.8 per liter, driven by the US-Israeli conflict with Iran and Strait of Hormuz disruptions. The surge pressures households after four years of inflation above the Bank of Japan’s 2% target. Prime Minister Sanae Takaichi’s government announced subsidies to reduce prices to around ¥170. The spike coincides with Takaichi’s upcoming Washington meeting with Donald Trump amid strained Middle East diplomacy.

2026-03-18

Japan’s gasoline prices jumped 18% last week to a record ¥190.8 per liter, driven by the US-Israeli conflict with Iran and Strait of Hormuz disruptions. The surge pressures households after four years of inflation above the Bank of Japan’s 2% target. Prime Minister Sanae Takaichi’s government announced subsidies to reduce prices to around ¥170. The spike coincides with Takaichi’s upcoming Washington meeting with Donald Trump amid strained Middle East diplomacy.