Nikkei Sinks Amid Escalating Oil Prices and Interest Rate Pressure

The Japanese Nikkei share average plummeted on Thursday due to rising oil prices and interest rates. The global market is under pressure as oil has breached the $100-per-barrel mark, fueled by escalating tensions in the Middle East.

Iran's attack on 10 ships near the Strait of Hormuz has triggered a wave of attacks on shipping, with the US having sunk five Iranian oil tankers. The Bank of Japan is expected to raise interest rates next week, which is also contributing to market jitters.

Nomura Securities strategist Wataru Akiyama stated that 'for the Japanese stock market as a whole, the rise in crude oil prices and interest rates are acting as a drag.'