Hormuz crisis escalation to cost Japanese people over ¥7tr - Analysis - EnviroNews - latest environment news, climate change, renewable energy
New analysis by climate organisation, 350. org, shows that elevated oil and gas prices have imposed already additional $18. 75 billion on Japan since the start of the Iran war and will overall cost up to over ¥7 trillion (¥7238. 50 billion – ¥7619. 28 billion) by the end of the year in case of continued escalation. Even in case of […]
- Advertisement -New analysis by climate organisation, 350. org, shows that elevated oil and gas prices have imposed already additional $18. 75 billion on Japan since the start of the Iran war and will overall cost up to over ¥7 trillion (¥7238. 50 billion – ¥7619. 28 billion) by the end of the year in case of continued escalation. Even in case of a swift normalisation of the Strait of Hormuz and the region, higher oil and gas prices would still cost the Japanese people over ¥4 trillion (¥4489. 97 billion – ¥4726. 28 billion). With oil prices hitting $100 per barrel again due to renewed US-Iran hostilities and the Houthi’s blockade of Saudi Arabia’s oil, Japan has yet to make decisive policies to break its near total dependence on imported oil and gas, experts on Friday, July 24, 2026, said in a press conference hosted by 350. org. Prime Minister Sanae Takaichi of JapanTo avert further economic and climate damage, 350. org campaigners urged Prime Minister Sanae Takaichi to abandon plans to revive coal and nuclear power and cancel multi-million-dollaroil and gasinvestments in the US. Instead, they encouraged the Japanese government to invest in energy efficiency and renewable energy that can bring costs down for good. 350. org’s analysis is based on oil and gas pricing scenarios of the International Monetary Fund’s April 2026 World Economic Outlook, Japanese consumption data and observed price averages since the start of the Iran war on February 28. It does not yet account for wider knock-on effects, including rising fertiliser and food costs, lower economic output and employment, or rising inflation driven by fossil fuel price volatility. As a result, the true economic damage is likely to be significantly greater than the direct losses from higher oil and gas prices alone. Masayoshi Iyoda, 350. org Japan Campaigner, said: “Over ¥7 trillion in higher energy bills is an outrage when people are struggling to cool their homes and cope with rising costs of living. Yet, the Japanese government chooses to funnel more taxpayer money into the same fossil fuels that are heating the planet and emptying people’s pockets. “The Takaichi administration has yet to learn the lesson of the Hormuz crisis. Until we cut the cord on imported oil and gas, Japanese households will remain hostage to volatile fossil fuel markets. Until Japan invests in homegrown renewables and energy efficiency and steps up as a climate leader, we will suffer from exceptionally high bills and hot summers. “The prospect of investing in decades more of expensive, unstable oil and gas in the era of cheaper renewables is now worrying even Japan’s business sector. This should be enough for the government to give pause and scrap new oil and gas deals with the Trump administration. ”Candice Fortin, 350. org US Campaign Manager, said: “Committing billions to new drilling, pipelines, and export terminals binds both the US and Japan to outdated fossil fuels for decades. But as renewable energy technologies become cheaper and more efficient, these investments risk becoming ‘stranded assets,’ basically unprofitable infrastructure rendered obsolete by the green transition. “Japan still commits to the Paris Agreement while the US moves away from the global climate pact, but both Japan and the US are going back to fossil fuel addiction. The US must stop wreaking havoc across the globe and instead work with international allies committed to a just transition so we can collaborate and end the global climate crisis. ”