Bessant Lands in Tokyo Over Yen Weakness as Iran War Drives Oil Toward $150
Updated
Updated · Bloomberg · May 11
Bessant Lands in Tokyo Over Yen Weakness as Iran War Drives Oil Toward $150
1 articles · Updated · Bloomberg · May 11
Scott Bessant arrived in Tokyo to discuss persistent yen weakness, with Japan newly exposed as the Iran war rattles currency markets and threatens its energy imports.
More than 95% of Japan’s oil comes from the Middle East, and Morgan Stanley warned crude could hit $150 a barrel if the Strait of Hormuz stays closed past late June.
The shock is spreading across currencies: Switzerland’s strong franc is forcing watchmakers to cut jobs, Turkey’s lira is under pressure from higher import bills, and India is urging citizens to curb fuel use and travel.
Investors are now repricing second- and third-order effects of the conflict on growth, inflation and debt markets, with Europe seen facing at least two rate hikes before year-end.
Beyond oil prices, how will this historic energy disruption permanently reshape global trade, national alliances, and even food security?
As the Iran war fuels an AI arms race, are tech giants creating a debt bubble that could trigger the next financial crisis?
With the Strait of Hormuz closed, is China's green tech push a climate solution or a new form of global economic dominance?
2026 Energy Shock: How the U.S.-Israeli War Against Iran Is Driving Japan’s Yen Crisis and Global Recession Risks
Overview
U.S. Treasury Secretary Scott Bessant’s urgent visit to Tokyo on May 11, 2026, highlights the deepening economic crisis Japan faces as global financial volatility rises. The ongoing U.S.-Israeli war against Iran has caused oil prices to soar, putting severe pressure on the Japanese yen. With the Bank of Japan maintaining low interest rates and uncertainty over future hikes, the yen’s weakness is likely to persist. Bessant’s trip aims to strengthen U.S.-Japan coordination to address these challenges, focusing on stabilizing currency and energy markets as Japan’s economic vulnerabilities grow amid global turmoil.