Japan’s Takaichi: Difficult to say now how Middle East conflict might affect Japan's economy

Japan Prime Minister Sanae Takaichi said on Monday that it’s hard to say how the conflict in the Middle East could affect Japan's economy.

Key quotes

Difficult to say now how Middle East conflict might affect Japan's economy. 

Many citizens are worried about rising gasoline prices; government scrutinising what steps it can take. 

Any steps government takes to mitigate impact from conflict likely will not involve changes to fiscal 2026 budget. 

Government considering using reserves to ensure gasoline prices do not rise to levels intolerable for households. 

Currently not thinking of taking additional budget steps as there are reserves we can tap under fiscal 2025 and 2026 budgets. 

Market reaction

At the time of writing, the USD/JPY pair is trading 0.30% higher on the day at 158.35.