The US-Israeli war on Iran just turned Japan’s snack shelves into a graveyard of black-and-white bags, and the crisis is far from over
The black and white of geopolitics.
The U.S.–Israeli war on Iran just turned Japan’s snack shelves into a ghost town of black-and-white bags, and the crisis is showing no signs of slowing down. Bright colors are gone, replaced by stark monochrome designs. The reason? A critical ink shortage caused by the war’s chokehold on global oil supplies, specifically the near-closure of the Strait of Hormuz, a vital waterway for a fifth of the world’s oil and gas.
According to NPR, Calbee Inc., the Tokyo-based company behind popular snacks like potato chips and shrimp crackers, announced this week that it’s switching 14 of its products to black-and-white packaging starting May 25. The move is a direct response to the disruption in the supply of naphtha, an oil-derived product used in everything from plastics to colored ink.
Calbee’s statement was straightforward: “This measure is intended to help maintain a stable supply of products.” What’s inside the bags hasn’t changed, just the outside.
The visual shift is jarring
Take Calbee’s “usu shio” (lightly salted) chips, for example. The original packaging featured a bright orange bag with a cheerful potato mascot and yellow chips. Now, it’s just black-and-white text and a muted design. It’s a small change with a big message: geopolitical conflicts don’t just play out on battlefields; they hit your snack aisle too.
The war’s ripple effects are stretching far beyond Japan. Across Asia, governments are scrambling to mitigate the fallout from the energy crisis, but the economic toll is already piling up. According to Reuters, the Asian Development Bank recently slashed its growth forecast for developing Asia and the Pacific to 4.7% this year, down from 5.1%, and bumped up its inflation outlook to 5.2%.
Oil imports to Asia, which accounts for 85% of Gulf crude shipments, plunged 30% in April compared to last year – the lowest levels since October 2015. The Strait of Hormuz, now effectively closed by Iran in retaliation for U.S. and Israeli strikes, has become a bottleneck for global energy supplies, and the consequences are hitting home in unexpected ways.
Japan, which imports nearly all of its oil, has managed to avoid the worst of the crisis
This is thanks to government reserves. But the country is still feeling the squeeze, particularly on naphtha, which is essential for producing plastics and ink. Calbee’s decision to switch to monochrome packaging isn’t just about aesthetics, it’s a survival tactic. The company, which employs over 5,000 people and exports to the U.S., China, and Australia, had just unveiled an ambitious growth strategy in March. Now, it’s playing defense.
The energy crisis is forcing governments across Asia to get creative or desperate. India, for instance, has kept fuel prices steady despite soaring crude costs, absorbing losses of about 100 rupees ($1.06) per liter on diesel and 20 rupees on gasoline. But analysts warn that price hikes might be inevitable after state elections wrap up.
Meanwhile, Pakistan, Bangladesh, and Sri Lanka are among the most vulnerable, with Pakistan recently paying $18.88 per million British thermal units for liquefied natural gas – about $30 million more than pre-war market prices. These countries are burning through fiscal buffers to shield consumers from the shock, but their resources are limited.
China, the world’s biggest oil importer, has fared better thanks to its massive reserves and diverse energy supply chain. Beijing has even imposed export curbs on fuel and fertilizer, though it’s making exceptions for some regional buyers.
Indonesia, Southeast Asia’s largest economy, is halting LNG shipments not under contract and looking to Africa and Latin America to replace Middle Eastern oil. It’s also planning to buy 150 million barrels from Russia by the end of the year. Thailand, on the other hand, has paused crude purchases as national stocks of refined products rise, thanks to refineries ramping up output and a government ban on exports.
Japan has also started buying more U.S. oil
Japan, which sources 95% of its oil from the Middle East, has started buying more U.S. oil, though at spot market prices that have skyrocketed since the war began. Shipping oil from the U.S. takes twice as long as from the Gulf, adding to the cost. Recently, Japan began releasing 36 million barrels of crude from its stockpiles, the second release since the war began. It’s a stopgap measure, but with no end to the war in sight, it’s unclear how long these reserves will last.
The economic strain is also showing up in currency markets. Since the war began on February 28, emerging market currencies in Asia have taken a beating. The Philippine peso has dropped more than 5% against the dollar, while the Thai baht and Indian rupee have fallen over 3%. The Indonesian rupiah is down more than 2.5%.
China’s yuan is the rare bright spot, up 0.8% against the dollar, while Japan has intervened to prop up the yen, which is now 0.4% higher than pre-war levels. South Korea’s won, however, has slipped about 1.1%. For now, the region’s economies are holding up better than they did during the 2022 Ukraine war energy shock, but the pressure is building.
Companies like Calbee are making tough calls to keep products on shelves, and governments are digging deep into reserves to keep the lights on. But with the Strait of Hormuz still closed and the war showing no signs of de-escalation, the black-and-white snack bags might just be the beginning.
(Featured image: Markus Winkler on Pexels)
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