Middle East conflict drives surge in Japanese electricity prices

Golden Ten Data reported on March 4 that, as Middle East conflicts raise concerns about long-term disruptions to energy supplies, Japanese electricity prices surged sharply this week. According to data from the European Energy Exchange, Tokyo's FY2026 base-load electricity contract rose to 16.38 yen (about $0.10) per kilowatt-hour on Tuesday, up 34% from last Friday. Bob Takai, CEO of EEX Japan, stated that Japan's electricity futures trading volume also reached a single-day historical high of 4.9 terawatt-hours on Tuesday. This trend shows that war is impacting economies like Japan, which rely on imported energy, through energy channels and may drive up electricity costs for households and businesses. Most of Japan's electricity depends on liquefied natural gas and coal-fired power generation.