Japan’s Nikkei Stock Average, or Nikkei 225, fell as rising oil prices linked to uncertainty surrounding the Iran war weighed on investors. At the Friday midday break in Tokyo, the index was down 0.3%, putting it on course for a weekly decline of about 4%, its largest weekly fall since the week ended July 17. The report was published on August 21, 2026.

The broader Topix index also slipped 0.1% and was down 3.4% for the week. Nomura Securities strategist Maki Sawada told Reuters that investors could take profits before the weekend because Middle East uncertainty had kept both oil prices and bond yields at elevated levels.

Shipping was the best-performing sector among the Tokyo Stock Exchange’s 33 sectors, with its shares rising 2.8%. Shipping companies gained on expectations that freight rates could increase after the closure of the key maritime route through the Strait of Hormuz.