Nikkei drops 1.7% as Middle East tensions boost oil prices

Published Fri, Mar 13, 2026 · 09:02 AM

[TOKYO] Japan’s Nikkei share average fell nearly 2 per cent on Friday as an escalating Middle East conflict drove crude oil prices higher, heightening inflation concerns and prompting investors to shun riskier assets.

The Nikkei was down 1.7 per cent at 53,502.50, as of 0010 GMT, on track for a second consecutive weekly decline. The broader Topix slid 1.2 per cent to 3,607.26.

Iran’s new Supreme Leader Mojtaba Khamenei said Iran will fight on and keep the Strait of Hormuz shut as leverage against the US and Israel, while Iran stepped up attacks on oil and transport facilities across the Middle East.

There were 7 advancers on the Nikkei index against 115 decliners.

Shares of Honda Motor tanked 6.1 per cent to their biggest percentage drop since February 2025, after Japan’s second-largest automaker said it would slip to its first annual loss in almost 70 years as a listed company over massive restructuring costs at its EV business. REUTERS