Japan's economy may face supply shocks and slumping demand from the Iran war, a risk the central bank may be overlooking by focusing on inflationary pressures, former central bank official Nobuyasu Atago said on Thursday. A slew of recent hawkish communication from the Bank of Japan has led markets to bet on roughly a 70% chance of a rate hike in April, as soaring oil costs from the Middle East conflict and higher import costs from a weak yen heighten price pressures.