Oil Prices Top $100, Sending Tokyo Stocks into Decline

The Tokyo Stock Exchange's Nikkei share average fell 0.8% to 64,597.46 by the end of the morning session on Thursday.

This decline was largely attributed to rising oil prices above $100 a barrel amid escalating tensions in the Middle East and increased expectations of a faster pace of monetary tightening by the Bank of Japan (BOJ).

Oil prices surged after Iran announced it had attacked 10 ships near the Strait of Hormuz, marking one of the biggest waves of attacks on shipping since the six-month-old conflict began.

The escalation pushed crude oil prices higher and drove global bond yields up as investors anticipated a tighter monetary policy response from central banks.