Japan posted a ¥634.5 billion customs-cleared trade deficit in July, its third consecutive monthly shortfall, as imports rose 27.8% to ¥12.15 trillion and outpaced a 23.2% export increase to ¥11.51 trillion. The deficit was narrower than the roughly ¥680 billion market consensus but wider than June's ¥409.9 billion, with semiconductors and automobiles leading export gains while mineral fuel imports jumped 53.5% and petroleum surged 87.8%. Middle East disruption, including the blockade of the Strait of Hormuz, kept crude oil and LNG prices elevated, while stronger electrical-equipment imports linked to data center and AI infrastructure added to import growth; an earlier seasonally adjusted reading had shown a separate ¥686 billion July deficit, highlighting that different trade measures are in circulation.