Nikkei Plunges as Oil Prices Surge
2026-03-09 00:24
By
Jam Kaimo Samonte
1 min. read
The Nikkei 225 Index tumbled 5.2% to close at 52,729 on Monday, hitting its weakest levels in two months intraday as oil surged past $100 a barrel on concerns of a protracted war in the Middle East, fanning inflation fears.
The drop comes as the expanding US-Israeli war with Iran entered its second week with no resolution in sight, while major oil producers in the region have cut output amid halted shipments through the Strait of Hormuz.
Japan relies on the Middle East for around 95% of its oil supplies with about 70% coming via the Strait of Hormuz, making the country particularly vulnerable to oil shocks.
The government is now considering tapping part of its national oil reserves as the Iran crisis continues.
Tech stocks were badly hit, including Kioxia Holdings (-9.7%), Fujikura (-9.9%), Advantest (-11%), SoftBank Gorup (-9.8%) and Tokyo Electron (-6.9%).
Major financial and consumer names also came under pressure, while energy-related firms gained amid soaring oil prices.