Nikkei Slides as Middle East Tensions Push Oil Toward $100

The Japan Nikkei 225 stock market index fell by 1.70% after Iran warned of potential strikes on Gulf energy infrastructure, pushing oil prices closer to $100 a barrel.

This drop was largely driven by geopolitical concerns rather than company-specific fundamentals.

Iran's warning raised the possibility of disruptions to key energy routes, particularly the Strait of Hormuz, which carries a significant portion of the world's seaborne oil.

The increased risk of disruption led traders to price in higher shipping and fuel costs, stickier inflation, and less room for central banks to cut interest rates.