Okafuto says Strait of Hormuz unusable for now, yen weakness a concern

2026-07-15

Strait of Hormuz seen difficult to use for now

Masahiro Okafuto, chairman of the Japan Foreign Trade Council and chairman of Itochu Corp, said at a regular news conference on the 15th that the Strait of Hormuz would not be usable for the time being amid continuing turmoil in the Middle East. He stressed the need to review supply chains from a medium- to long-term perspective.

Supply chains to be rebuilt through alternative procurement

Regarding the Strait of Hormuz, tensions have intensified as the United States and Iran have each declared they will reclose it. Okafuto said there would be no fundamental solution unless the war between Iran and the United States ends, and that even if it is resolved, it could happen again.

On the role of trading houses in the current Middle East crisis, he said there is not much crude oil imported via the Strait of Hormuz, adding that they are cooperating on procurement from alternative sources. He said some chemicals and other products are not produced in Japan and are manufactured in Southeast Asia, and that supply chains need to be considered across the Association of Southeast Asian Nations, or ASEAN, as a whole.

He also highlights yen weakness and Mercosur

He also referred to the yen's weakness against the dollar in foreign exchange markets. While saying companies need to actively expand overseas investment for growth, he pointed out that the biggest problem is the weak yen, and argued that it would be difficult to make the government's investment targets concrete unless this issue is resolved.

Commenting on the Japanese government's agreement in June to begin negotiations on an economic partnership agreement, or EPA, with the Southern Common Market, known as Mercosur, he said there are various obstacles to expansion, but it cannot be ignored from the standpoint of securing energy sources and food over the long term. He then called on the government to provide support that would make it easier for companies to move forward.

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