Japan is hurting from the Middle East conflict ahead of Prime Minister Sanae Takaichi's visit to Washington next week, with the country's first woman premier promising to be "candid" with US President Donald Trump.

How forthright Takaichi can afford to be in their March 19 meeting and how receptive the 79-year-old Trump will be remain to be seen.

The world's number-four economy is the fifth-biggest importer of oil, 95 percent of it from the Middle East and 70 percent passing through the Strait of Hormuz, now effectively closed.

On top of oil rising above US$100 per barrel, Japan's hefty import bill has also risen because its currency has fallen against the dollar, as every barrel of crude – traded in the US currency – costs more yen to buy.

On Wednesday, Japan was the first to announce a release from its strategic oil reserves, with Takaichi, 65, saying Japan was being "severely impacted" and Trump insisting that defeating Iran's "evil empire" was more important than crude prices.

Pricier oil – and also gas – risks making life more expensive for firms and families alike, which could hurt Takaichi's popularity.

Just over four weeks ago, she was basking in a landslide election victory, but polls published this week suggest that the honeymoon is souring.

After rice prices doubled last year, Stefan Angrick, senior economist at Moody's Analytics, said that in particular, food could jump again.

"[You] need energy to produce food. And natural gas, for example, is often used to produce fertiliser," he said.

Growth is already feeble – 0.3 percent in the last quarter – and Takaichi last year pushed through a 21.3-trillion-yen stimulus package.

Any extra efforts could worry investors who are already fretting – bond yields hit records in January – about Japan's colossal debts.

Japan is a strong backer of the rules-based international order, but Takaichi has been careful not to criticise the war and anger Trump after charming him on his visit to Japan in October.

"We do not possess detailed information, including whether this was a measure for self-defence. Our country will refrain from making a legal assessment," she said on March 2.

Tokyo can ill afford to annoy Trump since the United States has for decades – with 60,000 troops on Japanese soil – been the guarantor of Japan's security. (AFP)


Edited by Tony Sabine