Japan’s stock market opens after U.S. attack on Iran… Nikkei plunges 2.7% before paring losses

Japanese stocks, which opened amid a situation in which the United States attacked Iran together with Israel, plunged early on the 2nd. Japan’s benchmark Nikkei 225 fell as much as 2.7% early in the session before paring losses to under 1%.

As of 10:13 a.m., the Nikkei was down 485.06 points (0.82%) from the previous session at 58,365.21.

After the open, it slid to as low as 57,285.77, down 1,564.50 points (2.66%) around 9:30 a.m., but has been gradually narrowing its losses.

Nihon Keizai Shimbun (Nikkei) said that “investors’ risk aversion intensified due to the U.S. and Israel’s attack on Iran and the ensuing surge in oil prices.”

Earlier, the United States attacked Iran together with Israel and eliminated Supreme Leader Ayatollah Ali Khamenei. The U.S. and Israel launched an operation dubbed “Epic Fury” at around 9:45 a.m. on the 28th of last month local time in Iran (3:15 p.m. on the 28th Korea time), deploying fighter jets, missiles and drones to strike the capital Tehran and major cities. They carried out concentrated bombing on Pasteur Street, where government institutions including Khamenei’s office are clustered.

About 15 hours after the airstrikes, U.S. President Donald Trump announced via social media (SNS) that “Khamenei, one of the most evil figures in history, has died.” The Iranian government later confirmed Khamenei’s death.

International oil prices surged following the U.S. and Israel’s attack on Iran. That was because Iran’s Islamic Revolutionary Guard Corps (IRGC) blockaded the Strait of Hormuz, through which about a quarter of global seaborne crude volumes pass. Even before the airstrikes, the mere intensification of war fears between the U.S. and Iran had pushed international oil prices into the $70-a-barrel range (Brent), and depending on how the conflict unfolds, there are growing concerns about a breach of $100.

Oh Jeong-min, Hankyung.com reporter blooming@hankyung.com