It’s their home market, with a strong regional developer base, and Nintendo systems tend to have a lot of Japanese-exclusive titles that will most likely offset the lower cost of a Japanese-only console in the long run.
For international markets, they need to contend with US tariffs, that have been a threatened for many months, and various other production costs impacting all consoles. They are spreading these costs across all regions to both avoid sticker shock in any individual region as well as to avoid scalping via arbitrage.
You can find the data here. Took a quick glance at the data and didn’t find anything particularly loaded and didn’t see any direct mentions of Gaza but I could have missed something.