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.