Japan's Nikkei 225 Index Plunges Over 7% as Oil Prices Soar

Surging oil and gas costs cast shadow over economies dependent on imports from the Middle East

Published on Mar. 9, 2026

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Japan's benchmark Nikkei 225 index plunged more than 7% early Monday as oil prices soared to around $114 per barrel due to disruptions from the war in the Middle East. Other major Asian markets also tumbled, with South Korea's Kospi sinking 7.4% and shares in Australia, New Zealand, Hong Kong, and China all falling sharply. The surge in oil and gas prices, if sustained, could have serious repercussions for the global economy.

Why it matters

Japan and other Asian economies are heavily dependent on imported crude oil and natural gas from the Middle East. The sharp rise in energy costs will likely lead to higher inflation, reduced consumer spending, and slower economic growth across the region, potentially causing significant damage if oil prices remain elevated.

The details

The Nikkei 225 index fell just over 7% to 51,694.16 shortly after trading began. South Korea's Kospi sank 7.4% to 5,162.83, while shares in Australia, New Zealand, Hong Kong, and China also dropped more than 3%. Futures for the S&P 500 and Dow Jones Industrial Average fell over 2%. Brent crude oil surged to $114.11 per barrel, and U.S. benchmark crude jumped to $114.00, both more than 20% above their closing prices on Friday.

  • Oil prices have surged as the war in the Middle East, now in its second week, has ensnared countries and places that are critical to the production and movement of oil and gas from the region.

The players

Nikkei 225

Japan's benchmark stock market index.

Kospi

South Korea's main stock market index.

Brent crude

The global benchmark for crude oil prices.

U.S. benchmark crude

The U.S. benchmark for crude oil prices.

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What they’re saying

“The market woke up to the sound every macro trader dreads. The oil alarm bell. And this time it was not a polite chime. It was a fire siren.”

— Stephen Innes, SPI Asset Management

What’s next

If oil prices stay above $100 per barrel, some analysts and investors say it could cause serious damage to the global economy.

The takeaway

The sharp rise in oil and gas prices due to the war in the Middle East poses a serious threat to economies in Asia and around the world that are heavily dependent on imported energy from the region. Policymakers will need to take steps to mitigate the impact of these surging costs on inflation, consumer spending, and overall economic growth.