Nikkei 225 Fluctuates Amid U.S.-Iran Conflict and Oil Price Surge

The Nikkei 225 index saw significant volatility between July 13 and 14, 2026, as geopolitical tensions in the Middle East collided with U.S. economic data. On Monday, the index tumbled 1,315.00 points, or 1.92 percent, closing at 67,242.73. This decline followed broader weakness on Wall Street and a spike in crude oil prices, with West Texas Intermediate rising 9.62 percent to $78.28 per barrel.

Market instability was triggered by a wave of offensive strikes against Iran conducted by United States Central Command. Iran responded by attacking several Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan, and Oman, further destabilizing a fragile ceasefire.

The Nikkei 225 rebounded on Tuesday, July 14, rising 500.77 points to close at 67,743.50. This recovery was supported by positive momentum from Wall Street after the United States Department of Labor reported that June consumer prices fell more than expected, easing inflation concerns. Despite these gains, growth remained limited by the escalating conflict between the United States and Iran and the resulting pressure on oil prices.