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TOKYO — Rice prices in Japan finally fell in May for the first time in three and half years, officials said Friday, following sharp rises for the staple that put the government under huge pressure.

Rice prices skyrocketed in 2024 and 2025 because of supply problems linked to hot weather and panic-buying after a “megaquake” warning in 2024, amongst other factors.

Combined with falling living standards and corruption scandals, this led to voters deserting the ruling party and the resignation in September of Prime Minister Shigeru Ishiba after less than a year.

Rice prices excluding luxury brand koshihikari were 5.4 percent lower in May than a year earlier, the first drop since November 2022, a government official told AFP.

The government, now headed by the popular Sanae Takaichi, took various measures to bring rice prices down, including by releasing emergency stockpiles of the grain. — AFP

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OIL headed for a substantial weekly drop as the US-Iran interim peace deal saw shipping through the Strait of Hormuz start to return to normal, easing the global crude market’s biggest ever supply shock.

West Texas Intermediate steadied near US$77 a barrel, trading near the lowest since early March after tumbling by almost 10% this week. Brent was below US$80. Ships carrying stranded oil began making their way out of the waterway on Thursday, while Kuwait said it will start ramping up production.

US Central Command said that it had lifted its blockade on traffic to and from Iranian ports and coastal areas, while the Joint Maritime Information Center, a key naval information body, advised ships seeking to pass through the waterway to use a route near the Oman coastline to try and avoid mines.

US President Donald Trump hailed the developments, pushing back against criticism from Iran hawks, including some allies, that the deal conceded too much to Tehran. “The Markets are loving what is happening with Oil Prices way down, and Stocks way up,” Trump posted on social media.

Crude’s selloff means that futures have given back almost of the gains triggered by the war, which erupted in February when the US and Israel attacked Iran over its nuclear programme. The strait — which connects the Persian Gulf to global markets and normally carried about a fifth of global oil supply — had been subject to a double blockade by both Tehran and the US.

Vice President JD Vance downplayed concerns Iran could eventually impose tolls on traffic through the strait, a move that could turn the chokepoint into a money maker for Tehran. He also said a 60-day clock for working out the contentious details in the memorandum of understanding had started ticking. — BLOOMBERG

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KUALA LUMPUR — Oil tankers sailed through the Strait of Hormuz and the United States said it lifted its blockade on Iran on Thursday as an interim deal to end the war took effect, though key issues are still unresolved between the two countries.

Oil prices dropped to their lowest level since the war began on February 28, as analysts said exports through the strait, which handles about one-fifth of global oil supply, could return to normal in the coming months.

But Israel continued its war against Hezbollah in Lebanon, raising questions about whether the agreement would hold.

In Washington, some of President Donald Trump’s Republican allies in Congress questioned whether he had given up too much in order to end the conflict, which is unpopular with US voters.

Iran’s Supreme Leader Ayatollah Moitaba Khamenei said Trump signed the deal “out of desperation” and signaled that upcoming talks over Iran’s nuclear programme – Trump’s stated reason for starting the war – would not be easy.

“If the American side wants to be too demanding, we will not accept it,” he said in a written message.

The deal gives negotiators 60 days to reach agreement on the status of Iran’s nuclear programme, and set up a US$300 billion reconstruction fund for Iran and other financial incentives.

US Vice President JD Vance, who will lead the US delegation, said Washington will also seek to limit Tehran’s long-range missiles.

When he launched the war nearly four months ago, Trump said he aimed to destroy Iran’s nuclear weapons programme, end its ability to strike its neighbours, prevent it from supporting allied militants in the region and make it possible for Iranians to topple their hardline leaders.

Though he initially demanded Iran’s “unconditional surrender,” Trump ultimately signed the agreement with none of those objectives met.

US officials say the negotiations could still yield a strong agreement on Iran’s nuclear programme. But critics say Iran is in a stronger position now, having withstood a superpower attack, exerted control of the Strait of Hormuz and gained valuable waivers to financial sanctions.

Iran signaled it will still exert control over the strait, saying it will issue permits and direct traffic during the 60-day period, though no fees will be charged during that time.

But in Lebanon, where more than a million people are displaced by the fighting, Israeli forces launched fresh airstrikes early on Thursday, raising doubt about how far Trump will go to force his wartime allies to halt an offensive he has now pledged to end.

Trump said he expects a complete ceasefire on all fronts. “The United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold,” he said on social media.

The deal calls for the “permanent termination” of the war in Lebanon and for its “territorial integrity and sovereignty” to be ensured.

Israel, which was not part of the negotiations, has said it has no intention of withdrawing from Lebanon and released a new map showing an expanded occupation zone.

Trump has become openly critical of Israel’s operations in Lebanon, leading to one of the biggest rifts between the two countries in decades.

Vance warned Israel to respect the peace process.

“If I was in the cabinet of the Israeli government, I might not be attacking the only powerful ally that I have anywhere left in the entire world,” he said at the White House. — REUTERS-BERNAMA

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ISLAMABAD — Pakistan and Iran on Thursday reaffirmed their commitment to advancing regional peace during a high-level telephone call, the first such contact since the signing of the new US-Iran peace deal, which Pakistan mediated, Anadolu Ajansi (AA) reported.

The call between Pakistan’s Prime Minister Shehbaz Sharif and Iranian President Masoud Pezeshkian lasted over a half-hour and focused on implementation of the newly signed agreement and the future direction of Pakistan-Iran relations, according to a statement issued by the prime minister’s office.

Sharif congratulated Pezeshkian, the Iranian leadership, and the people of Iran on what he described as a “historic peace deal,” saying it would help restore stability in the region and support Iran’s national rebuilding efforts while deepening bilateral cooperation.

Pezeshkian, on behalf of the Iranian nation and himself, thanked Pakistan and Chief of Army Staff Field Marshal Syed Asim Munir for their “critical role” in facilitating the mediation process, praising Islamabad’s efforts as constructive and sincere.

He said Iran would always remember Pakistan’s support during difficult times and expressed Tehran’s readiness to expand cooperation across the political, economic, and regional fields.

The leaders agreed that the peace deal marked a new chapter in bilateral ties and stressed the importance of maintaining momentum in its implementation.

They also agreed to pay reciprocal visits to each other’s capitals at the earliest opportunity and to remain in close contact in the coming days to coordinate further steps.

Separately, Sharif postponed a planned trip to Switzerland for a signing ceremony as the deal had already been signed and was under implementation, according to state-run Pakistan TV.

According to Pakistan, which mediated between the two warring sides, the deal entered into force with “immediate effect” after US President Donald Trump and Pezeshkian electronically signed it overnight on Wednesday/Thursday.

Sharif, who announced the signing of the deal, known as the Islamabad Memorandum of Understanding, said Iran will instantly “reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade.”

Sharif also signed the agreement. — BERNAMA-ANADOLU

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