BOJ Hikes to 31-Year High as Hormuz Disruption Drives Global Energy Shock

The Bank of Japan raised its benchmark interest rate from 1.0% to 1.25% on Friday — its highest level in 31 years — citing persistent inflation pressures driven by soaring oil costs, according to its official policy statement. The rate move was widely anticipated by markets. Simultaneously, the Strait of Hormuz disruption has cut Pakistan off from virtually its entire LNG import base: Qatar and the UAE together supply approximately 99% of Pakistan's LNG, which accounts for roughly 30% of total Pakistani gas supply, per Gastech Conference reporting cited by Dawn. Iran's IRGC has claimed targeting of a tanker in the strait, and UK maritime trade operations has reported two separate maritime incidents in Omani waters. Trump told a North Carolina rally he believes Iran wants a deal and the war could end soon, while UN human rights experts have asserted U.S. strikes on Iran may constitute war crimes, citing at least 177 civilian deaths.