Japanese Stocks Face Steep Declines as Energy Shocks Trigger Currency Plunge
Tokyo, Sunday, 29 March 2026.
As the yen plummets past 160 against the dollar for the first time in 20 months, rising energy costs are pushing Japanese stock markets toward a severe decline.
The Energy Shock and Currency Pressures
The catalyst for Japan’s current market turbulence stems directly from the ongoing conflict in Iran, which lurched into its second month by late March 2026 [2]. The blockage of the Strait of Hormuz has rattled global markets, pushing U.S. oil prices to test the $100 per barrel mark on March 27 [2]. Because Japan relies heavily on imported energy, these soaring oil and liquefied natural gas (LNG) prices are severely constraining the nation’s economic and fiscal outlook [1][3].