You can't make this up.
"Japan would tap its $1.4-trillion foreign exchange reserves and build short positions in the oil futures market by selling futures contracts to push down prices"
https://www.reuters.com/world/asia-pacific/japan-shifts-focus-oil-unorthodox-scramble-talk-up-yen-2026-03-26/
Posted by TORUKMACTO92
9 Comments
They don’t want us to get Maseratis
Could backfire immensely. Should any national leader take seriously DJT’s promises?
They know from experience that the US is willing to use nukes
To push prices down. Says right there. But why is more interesting. I suspect this has to do with the fact that Japan is the largest foreign holder of U.S. debt, holding over $1.1 trillion to $1.2 trillion in U.S. Treasury securities as of early 2026. Japan, and a ton of financial institutions, are desperately trying to put their fingers on the scale to keep oil prices artificially low by holding shorts.
This is probably why Trump keeps making these “peaceful resolution” claims so that his corrupt monied friends can exit their shorts without being short squeezed. I don’t think Trump has the same allegiance to Japan and it’s likely Japan will be left holding the bag. Once the short squeeze happens, Brent hits $150-$200.
Oil is traded in dollars, traders are converting their yen to dollars to buy oil which causes a weakening yen. To stem the weakening of the yen, Japan wants to artificially lower the price of oil so that it is less attractive to those who trade in yen. In theory it could work, but it is risky because of the uncertainty in the oil market with the ongoing war and how that situation will play out, also it’s uncertain if Japan could meaningfully move the market on their own.
China will happily short-squeeze Japan
Japan about to get margin called.. and be even more broke.
Is their citizens are converting yen to go long oil, this would be a hedge by the government.
Considering the entire financial system rests upon a weak Yen, what does this mean for that?