As the breakdown of peace talks between the United States and Iran drives up crude oil prices, Japanese companies are facing a dimming earnings season. By last Thursday, equity analysts had lowered profit expectations for 113 companies listed in the Topix 500 index. This marks the first time since July that downward earnings revisions have outnumbered upward adjustments. With the Strait of Hormuz largely closed—a waterway that handles over 90% of Japan’s crude oil imports—Japanese chemical firms and other industries heavily reliant on petroleum face significant risks. Soaring oil prices have already led Nomura Securities to cut earnings forecasts for several corporations, including Kao Corp. and Unicharm Corp.