Oil Price Increases Raise Concern about Japan's Economy

   Tokyo, June 24 (Jiji Press)--Rising oil prices following last weekend's U.S. military strikes on Iranian nuclear facilities have raised concern about possible negative effects on Japan's economy.
   Companies and market participants are worried that crude oil prices may shot up further if Iran retaliates by closing the Strait of Hormuz, a vital global oil transportation route, causing a slump in Japanese gross domestic product.
   On the Tokyo Commodity Exchange on Monday, the key Dubai crude oil futures contract for November settlement rose 2.8 pct from Friday to 66,080 yen per kiloliter. It briefly reached 66,390 yen, the highest level for a key contract since early April.
   Japan relies on the Middle East for more than 90 pct of its oil imports, much of which pass through the Strait of Hormuz.
   Takahide Kiuchi, executive economist at Nomura Research Institute Ltd., stated that if international oil prices rise to 120 dollars per barrel due to such a blockade, Japan's inflation-adjusted real GDP could be pushed down by 0.6 pct.

(2025/06/24-09:00)

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