People walk past an electronic stock board showing Japan’s Nikkei index at a securities firm, Monday, March 9, 2026, in Tokyo.
AP/Kyodo News
Hide caption
Toggle title
AP/Kyodo News
BANGKOK – Japan’s benchmark Nikkei 225 index fell more than 5% on Monday after oil prices rose to around $120 a barrel, casting a shadow over an economy heavily dependent on imports of oil and gas from the Middle East.
Futures for the S&P 500, the Nasdaq composite index and the Dow Jones Industrial Average were trading less than 1% after falling more than 2% late Sunday.
Zhai Jun, China’s special envoy to the Middle East, called for an end to the attacks and condemned attacks on non-military targets and civilians. Meanwhile, South Korean President Lee Jae-myung warned against hoarding, panic buying and contracting among refineries and gas stations.
“Please respond proactively to the growing volatility in the financial and foreign exchange markets, which are the lifeblood of our economy,” Lee said. He said that the government will limit the price of fuel.
Oil prices rose after both sides in the war hit new targets over the weekend, including civilians. Bahrain has accused Iran of hitting one of the desalination plants critical to drinking water in the Gulf states. Its national oil company declared force majeure after the country’s only oil refinery was attacked. Israel hit oil depots in Tehran, sending thick plumes of smoke and triggering environmental warnings.
In early European trading, Germany’s DAX fell 2.6% to 22,983.67 and the CAC 40 in Paris lost 2.7% to 7,779.46. Britain’s FTSE 100 lost 1.9% to 10,089.05. Oil exporter Norway was the only market to show gains, where its benchmark rose 0.1%.
In Asian trading, Japan’s Nikkei 225 fell more than 7% earlier in the day but recovered some losses to close 5.2% lower at 52,728.72. South Korea’s Kospi fell 6 percent to 5,251.87.
Chinese markets, less affected by global trends, saw more moderate losses. Hong Kong’s Hang Seng fell 1.4% to 25,408.46 and the Shanghai Composite Index fell 0.7% to 4,096.60.
Taiwan’s benchmark lost 4.4% and India’s Sensex lost 2.3%. Other regional markets also fell.
As of 0900 GMT, Brent crude was trading at $106.61 a barrel. US benchmark crude rose to $103.20. Both are about 15% higher than Friday’s closing prices.
Crude prices have soared to their highest level in at least 14 years as the war, now in its second week, has hit countries and locations critical to the production and movement of oil and gas from the Persian Gulf. . They last rose above $100 in 2022, shortly after Russia invaded Ukraine.
“The market woke up to the sound every macro trader dreads. The oil alarm bell. And this time it wasn’t a polite bell. It was a fire siren,” Stephen Innes of SPI Asset Management said in a commentary.
Rising oil and gas prices, if they continue, could ripple around the world, further complicating matters for countries still adjusting to higher tariffs on exports to the United States under President Donald Trump.
Senior officials from Southeast Asian countries are meeting this week in Manila, the Philippines, where they are expected to discuss ways to deal with the shock from higher energy costs.
“Oil prices will peak at some point — maybe they already have, maybe more to come — but they are likely to fluctuate at higher levels for weeks, maybe months,” Swissquote’s Ipek Ozkardeskaya said in a commentary. “Eventually — even if the war continues — energy prices may fall. But in the meantime, higher energy prices will reignite inflation globally and weigh significantly on growth.”
On Friday, the S&P 500 fell 1.3% after reports that US employers cut more jobs than they created last month and oil prices rose above $90 per barrel. The combination of a weak economy and high inflation is a bad scenario for investors because the Federal Reserve has no good tool to fix both problems at the same time.
The Dow fell 945 points and the Nasdaq Composite fell 1.6% before closing with a loss of 453, or 0.9%.
Earlier on Monday, the US dollar, which maintained its status as a safe haven for investors against uncertainty, gained against other major currencies. It was trading at 158.55 Japanese yen, up from 158.09 yen late on Friday. The euro rose to $1.1539 from $1.1556.
