TOKYO, July 21 (Reuters) - Japan's exports rose for the 10th straight month in June, government data showed on Wednesday, driven by a weaker yen and strong demand from AI-related data centers, despite supply disruptions due to the U.S.-Israeli war on Iran.

The total value of exports jumped 19.3 percent year-on-year in June, exceeding the average market expectation of 18.6 percent, after rising 16.8 percent in May.

The data showed that exports to the United States last month rose 13 percent compared to a year earlier, while shipments to China increased 17.6 percent.

Imports jumped 25.4 percent in June compared to the same period last year, against market expectations of 21 percent, after shipping disruptions through the Strait of Hormuz led to a sharp rise in crude oil and derivative prices.

As a result, Japan recorded a trade deficit of 406.9 billion yen ($2.49 billion) in June, compared with expectations of a deficit of 120 billion yen.

High import bills, exacerbated by the weak yen, have posed a dilemma for Japanese policymakers as they seek to balance inflationary pressures with the need to support economic growth.

Despite the start of high-level peace talks between the United States and Iran in late June and the drop in oil prices, uncertainty surrounding the conflict has negatively impacted trade and logistics. The escalating tensions between Iran and the United States in recent weeks have heightened concerns among policymakers worldwide.

The Bank of Japan is set to hold interest rates steady next week, maintaining its tight monetary policy, as the weak yen and rising energy prices increase inflationary pressures and complicate the delicate balance between supporting growth and maintaining price stability.

(US$1 = 163.2000 Yen)