The Japanese stock market extended losses at Tuesday's open, driven by escalating concerns over the conflict in Iran, which pushed global oil prices higher.
The benchmark Nikkei 225 fell by 327.4 points, or 0.6%, opening the session at 57,729.80.
Growing instability in the Middle East is stoking fears of supply disruptions, sending oil prices surging.
The price of West Texas Intermediate crude was at $71.23 a barrel, up 6.3%, while Brent crude was $77.74 per barrel, a gain of 6.7%, according to reports.
The near-stoppage of traffic through the crucial Strait of Hormuz, coupled with an outage at a major Saudi Arabian refinery, has highlighted the fragility of global oil supplies, Bloomberg News reported on Tuesday.
Given Japan's heavy reliance on energy imports from the Middle East, the rising geopolitical tension poses significant risks to both its economic stability and national security.
The impact is already being felt in the corporate sector, with several Japanese shipping companies choosing to suspend their operations in the Persian Gulf as the military conflict in the region intensifies.
