Nikkei 225 Hits Historic 64,000 Mark as Oil Prices Decline

Japan’s Nikkei 225 tops 64,000 for first time as oil falls on Hormuz reopening hopes

Japan’s Nikkei 225 hit a record 64,000 on Monday amid falling oil prices and renewed optimism over Hormuz Strait stability, lifting risk appetite in low-liquidity holiday markets. The surge followed a 1.1% decline to 59,284.92 on April 30, highlighting volatility driven by geopolitical and energy dynamics.

How Oil Volatility Reshaped Market Sentiment

The Nikkei’s breakthrough above 64,000 reflected a 7.36% drop in Brent crude futures to $124.84 a barrel on May 25, as U.S.-Iran tensions eased. This reversal of earlier gains—when oil prices surged to $131.65 on May 12 amid fears of Hormuz closures—demonstrates the index’s sensitivity to energy markets. For context, the Nikkei’s 16.1% monthly gain in April marked its strongest performance since October 2025, per the Economic Times