The Nikkei 225 fell sharply as crude oil futures rose above $100. Crude prices climbed amid mounting tensions in the Middle East, sending U.S. stocks lower and the effects through to the Japanese market.
On the morning of the 11th, the Nikkei 225 began trading about ¥1,000 lower after crude oil futures rose above $100 a barrel. The decline subsequently widened, eventually exceeding ¥2,000. The index is currently hovering around ¥63,613, marking the first time in a week that it has fallen below ¥64,000.
The rise in crude prices triggered a sharp surge in WTI futures, a key indicator for WSI, while U.S. stock indexes also fell across the board. There is growing speculation that concerns over a prolonged crisis in the Middle East are affecting the crude oil market.
As views spread that the Nikkei 225's decline was driven by higher oil prices, movements in the U.S. market have spilled over into the Japanese market. Future developments will depend on the crude oil market and the course of events in the Middle East.