Nikkei 225 Fluctuates as Houthi Attacks Drive Oil Prices

The Nikkei 225 index experienced a period of instability between July 22 and July 24, 2026, reacting to a combination of geopolitical tension and poor corporate earnings. On Wednesday, the index slipped 116.59 points to close at 66,115.60, following a severe two-day losing streak that saw the market plummet over 4,600 points. This downturn was fueled by soft performance on Wall Street and rising crude oil prices, which climbed to $86.96 per barrel amid escalating conflict between the United States and Iran.

On Thursday, the index recovered modestly, gaining 307 points to close at 66,422.60, supported by technology and financial shares. However, this recovery faced immediate pressure from a sharp sell-off on Wall Street, where the Dow, NASDAQ, and S&P 500 declined following negative earnings reports from Alphabet Inc. and Tesla.

Market instability intensified as crude oil prices surged another 6.63 percent to $92.59 per barrel. This spike followed attacks by Iran-backed Houthis on two Saudi Arabian tankers in the Red Sea, raising global concerns regarding inflation and interest rates. Investors now look toward upcoming June consumer price figures and July PMI results from Japan to determine the market's next direction.