Japan Moves to Cap Gasoline Prices as Oil Surges Over 25% Amid Iran War

Japan's government is weighing emergency measures to protect its economy from soaring fuel costs triggered by the expanding U.S.-Israeli war on Iran. Prime Minister Sanae Takaichi told Parliament on Monday that the government has been assessing possible steps since last week, with a focus on preventing gasoline prices from reaching levels the public cannot afford. Takaichi confirmed the measures could be funded through existing reserves, ruling out any changes to the draft fiscal 2026 budget currently under parliamentary review or the creation of a stop-gap budget. The urgency stems from oil prices surging more than 25% on Monday to their highest levels since mid-2022, driven by fears of prolonged shipping disruptions. Japan's heavy dependence on imported fuel makes it especially vulnerable to a sustained price spike.