Japan’s Nikkei Opens Sharply Lower, Citing Escalating Global Energy Crisis As Primary Driver

Japan’s Nikkei opened sharply lower, briefly falling about 5% to intraday lows near 50,567 before closing at 51,064 on Tuesday.

Reporters attributed the sell‑off mainly to an escalating energy crisis linked to the US‑Iran conflict and disruptions in the Strait of Hormuz.

Brent crude topped $115 per barrel and the yen weakened past ¥160/USD, raising import costs and inflation risks for Japan.

The Nikkei fell over 13% in March 2026, its worst monthly drop since 2008, while other Asian markets like the KOSPI also declined.

Investors moved into safe havens such as gold and US Treasuries amid continued market volatility.