Tokyo stocks plunged on March 9, 2026, as surging oil prices fueled by escalating Middle East tensions rattled investors. The Nikkei 225 average fell 5.2% to close at 52,728.72, after dipping as much as 7.6% intraday. Fears of inflation and economic slowdown intensified amid the U.S.-Israeli conflict with Iran.
Tokyo's stock market tumbled on March 9, 2026, as oil prices soared due to the escalating U.S.-Israeli military operations against Iran, sparking a broad selloff. The Nikkei 225 average plunged as much as 7.6% in the morning to 51,526.70 before closing 5.2% lower at 52,728.72, its lowest level since February 2. The broader Topix index slipped 3.8% to 3,575.84.
Brent crude oil surged 30% to $119.46 per barrel, while U.S. crude futures exceeded $111, up 22% and marking the highest levels since mid-2022. The spike stemmed from supply concerns after Israel's airstrike on an oil storage facility in Tehran on Saturday, the first such target since the U.S.-Israeli operations began on February 28. In Iran, Mojtaba Khamenei was named supreme leader to succeed his father, Ali Khamenei, who was killed in the attacks, indicating hardliners' continued control.
Hitoshi Asaoka, chief strategist at Asset Management One, said, "The market started taking the impact of the Middle East conflict more seriously. Until last week, there was some optimism and investors picked up stocks on dips, but now there is a question about the market upside." Shoichi Arisawa, general manager of investment research at IwaiCosmo Securities, noted concerns over the oil surge's negative effect on corporate profits.
Chip-related shares led losses, with Advantest down 11.03% and Tokyo Electron falling 6.87%. Bank stocks like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group each lost more than 3%. All 33 industry sub-indices on the Tokyo Stock Exchange declined, with the nonferrous metals sector dropping 8.38% as the worst performer.
Just two weeks earlier, the Nikkei and Topix had hit record highs on expectations of profit growth, supported by Prime Minister Sanae Takaichi’s stimulus measures and an AI-driven rally. Friday's weak U.S. February employment data also contributed to the U.S. market's drop, rippling into Tokyo.
