world-economy

Japan's Trade Deficit Widens Amid Weak Yen, Middle East Tensions

Japan's trade deficit expanded unexpectedly in June as currency weakness drove up import costs and geopolitical tensions pushed energy prices higher. The yen's depreciation inflated the value of incoming goods, while escalating conflict in the Middle East increased crude oil expenses for the import-dependent economy. Energy costs have climbed as regional tensions threaten maritime chokepoints critical to fuel supplies. U.S. port terminals, including Long Beach, reported strong June throughput despite economic headwinds and supply chain volatility. Shipping rates have softened following earlier tariff-driven peaks, though carriers remain cautious about demand forecasts ahead of political developments that could reshape trade policy.