U.S. and Israeli forces attacked Iran over the weekend in a massive assault that killed Ayatollah Ali Khamenei, the nation's supreme leader for nearly four decades. This triggered retaliatory strikes in the Middle East, prompting Japanese police to bolster security at U.S. and Israel-related facilities. Stock markets in Tokyo opened lower, and Bank of Japan Deputy Governor Ryozo Himino stressed the need to monitor the situation.
The United States and Israeli armed forces attacked Iran over the weekend in a massive assault that killed Ayatollah Ali Khamenei, the nation’s supreme leader for nearly four decades. The attacks triggered retaliatory strikes against multiple targets in the Middle East. Flights were halted in the region, and vessels have been forbidden from navigating the Strait of Hormuz—20% of the world's crude oil is transported through the strait.
In Japan, the National Police Agency issued an administrative notice on Sunday, instructing prefectural police departments nationwide to increase security at U.S.- and Israel-related facilities, following the two countries' military attacks on Iran. The measures target the U.S. Embassy in Tokyo, U.S. consulates, military bases across Japan, as well as locations linked to Israel and Jewish communities. Patrols will also be strengthened at facilities related to Iran and Islamic communities. In light of Iran's suggestion of retaliation, police departments will reinforce their posture by increasing deployed officers, preventing disturbances during potential protests, and enhancing information-gathering efforts.
Stocks fell at the open Monday in Tokyo after the Middle East conflict escalation and oil price jump, with the Nikkei 225 dropping about 2% initially and down about 1% an hour later. The yen weakened as traders evaluated its safe haven status but was overall little changed, while Japanese government bonds strengthened slightly. In New York trading, crude oil futures rose about 12% from Friday, hitting an eight-month high of $75.33 per barrel, before settling back as trading continued.
Bank of Japan Deputy Governor Ryozo Himino refrained from signaling an imminent interest rate hike in a speech to local business leaders in Wakayama Prefecture. “I want to closely monitor the situation” in the Middle East, he said. The remarks, made as the economic outlook grew murkier after the U.S.-Israeli strikes on Iran, indicate little chance of a rate increase when the BOJ’s board meets on March 19, contrasting his January 2025 comments ahead of a rate adjustment.
