Nikkei Hits Record High as Asia Markets Shrug Off Hormuz Tensions
CNBC reported Wednesday that Asia-Pacific equities advanced at the open, with Japan’s Nikkei 225 hitting a record high despite ongoing uncertainty surrounding U.S.-Iran negotiations and disruptions to global oil flows.
Nikkei Record High Leads the Region
Japan’s Nikkei 225 gained 0.91% in early trading, while the broader Topix index added 0.93%. Australia’s S&P/ASX 200 edged 0.32% higher. Hong Kong’s Hang Seng futures were trading at 25,853, modestly below the index’s previous closing level of 26,038. South Korean markets were shut for a public holiday.
The gains came even as U.S. equity futures hovered near the flatline. Wall Street’s Tuesday session had been broadly positive. The S&P 500 climbed 0.13% to close above 7,600 for the first time on record, while the Dow Jones Industrial Average added around 229 points. The Nasdaq Composite posted a marginal gain.
Hormuz Closure Keeps Oil Elevated
The Strait of Hormuz remains a central concern for global energy markets. Secretary of State Marco Rubio told the Senate Foreign Relations Committee on Tuesday that Iran has mined large portions of the critical waterway and is targeting commercial shipping. It marked his first congressional appearance since the Iran war began on February 28.
A White House official separately confirmed that the Pentagon has destroyed dozens of mines and more than 40 vessels used to lay them. Before the conflict, roughly 20% of global oil supplies transited the strait each day.
Oil prices reflected the persistent supply anxiety. West Texas Intermediate futures for June were up 1.16% at $94.92 per barrel. Brent crude for July was last quoted at $96 per barrel.
Background: A Market Caught Between Risk and Resilience
Equity markets across Asia and the United States have shown a notable capacity to absorb geopolitical shock in recent months. The S&P 500 pushing through 7,600 underscores how investor appetite for risk has remained firm even as a major oil-transit chokepoint stays effectively shut. Analysts have pointed to expectations of a negotiated resolution and steady domestic earnings as buffers against a sharper selloff.
The Nikkei’s record run adds another dimension. A weaker yen and robust corporate earnings have powered Japanese equities higher through much of 2026, and Wednesday’s move reinforces that momentum.
What to Watch Next
Attention now turns to whether U.S.-Iran talks can produce a framework to reopen the Strait of Hormuz. Any breakthrough would likely ease crude prices quickly. Until then, oil markets remain exposed to further upside surprises, which could eventually weigh on the broader equity rally now lifting indexes from Tokyo to New York.
Read Next: OPEC+ Output Decision Looms as Oil Markets Eye Hormuz Disruption
