Japan's Indexes Plunged 6% as Crude Oil Prices Spiked On Widening Crisis In Middle East

Akira Ito
09 Mar, 2026
Tokyo

Stocks in Tokyo plunged on Monday amid worries of rising economic stress as the U.S.'s and Israel's war on Iran pushed crude oil prices to a four-year high.

The Nikkei 225 Stock Average plunged nearly 7%, and the broader Topix decreased 5.2% after Brent crude oil prices soared 27% to $116.83 a barrel.

Japan relies on about 95% of its energy products from the suppliers in the Middle East, and about 70% pass through the Strait of Hormuz.

Brent crude oil prices jumped nearly 70% since Israel struck Iran on February 28. Over the weekend, Israel struck Iran's oil infrastructure, raising fears of global supply disruptions. 

Moreover, Iraq, Kuwait, the UAE, and Qatar curtailed energy production over the weekend, as the strait remained closed for the fifth day in a row amid rapidly escalating conflict in the region.

At least fifteen nations in the Middle East are involved in the U.S. and Israel's war, which has killed more than 1,200 people in Iran, including at least 165 school children. 

The U.S. president walked back from his earlier assertions that an Iran war will be over in less than a couple of days, and investors are increasingly factoring a prolonged and a wider war in the Middle East.

As the Asian nations brace for a sharp rise in inflation, fueled by a jump in inflation, the European Union member states are worried about another spike in energy prices and a new wave of refugees. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 6.7% to 51,853.93, and the broader Topix Index fell 5.2% to 3,524.24. 

Technology stocks led the sharp decline in Tokyo on Monday, as crude oil prices soared to a four-year high. 

SoftBank Group, Kioxia Holdings, Advantest Corp., Fujikura, and Lasertec dropped as much as 11%. 

Toyota Motor Corp. fell 1.5%, Honda Motor Corp. declined 5.2%, and Nissan Motor dropped 6%.

Nippon Yusen, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha declined between 0.5% and 1.5%.