Japan Is Trapped Between Two Wars — And It Could Break the Global Economy

Japan Is Trapped Between Two Wars — And It Could Break the Global Economy

Japan is being squeezed by two conflicts at once. The US-Iran war closed the Strait of Hormuz, threatening 95% of Japan’s oil supply and spiking prices 25%. Meanwhile, the Russia-Ukraine war collapsed Japan-Russia trade — yet Tokyo still relies on Russian gas for 9% of its LNG. All of this is hitting the world’s most indebted developed economy, with debt over twice its GDP. Rising energy costs mean rising inflation, rising interest rates, and a debt burden that gets heavier by the day. If Japanese capital starts flowing home from global markets, the ripple effects could reach everyone. Here’s the full breakdown in 60 seconds.

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