Japan Faces Historic Yen Collapse Risk From Prolonged Oil Surge, SMBC Warns

📉 TOKYO — The world's third economy may be one oil shock away from a currency crisis. 📌 LOOK CLOSER: Japan imports nearly all its oil — a prolonged Hormuz-driven surge hits its current account and forces the BoJ's hand. Fiscal loosening compounds it: widening deficits weaken yen support precisely when import costs spike. A yen collapse exports inflation regionally and stresses US Treasury markets, where Japan remains the largest foreign holder.