KEY TAKEAWAYS
- Japan has been buffeted by the outbreak of a new Middle Eastern war, as energy supply shocks could trigger stagflation.
- The war could also complicate Japan’s relationship with the US, simultaneously drawing US attention and resources away from East Asia while leading to pressure from Washington to support the US war effort, which could prove controversial.
- Nevertheless, the war could bolster support for Prime Minister Takaichi Sanae’s ambitions to bolster Japan’s autonomy and self-reliance.
Japan Foresight 