War in the Persian Gulf means volatility in the global energy market

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Geoeconomic Briefing
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An oil tanker anchors off Muscat, Oman, on March 7, as regional tensions amid the U.S.-Israeli-Iran conflict have virtually closed off the Strait of Hormuz, a vital waterway
By Akihiko Sasaki
Contributing writer
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Last month’s U.S.-Israeli strike on Iran and the subsequent spike in energy prices serve as a stark reminder that a stable supply of oil and natural gas is essential to economic development, rising living standards and industrial competitiveness
When supply is disrupted, the effects are immediate: Inflation accelerates, growth slows and social stability is tested.The current conflict in the Persian Gulf has effectively closed the Strait of Hormuz, a vital chokepoint through which about 20% of global oil consumption passes
Governments worldwide, including Japan’s, have been forced to respond under severe time pressure, while media coverage has at times been fragmented and contradictory
As markets absorb these developments, crude prices have swung sharply and equity markets have grown increasingly volatile.Although Tehran has signaled it may allow “Japanese-related ships” to pass through the strait — a route that carries about 93% of Japan’s crude imports — the situation underscores a broader reality: Energy security is inseparable from national strategy
Crafting effective policy requires understanding the structural transformation of energy security, its drivers and its emerging risks — factors often underestimated by Japanese firms.

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