Stocks in Asia mostly fell as oil prices rose on continued uncertainty about the Iran war, with Japan’s Nikkei 225 sinking 1% after the Bank of Japan opted in a split vote to keep its key interest rate unchanged. The Bank of Japan held its policy rate at 0.75% in a 6-3 vote, and said in a statement, “There are various risks to the outlook,” adding, “For the time being it is necessary to pay particular attention to the impact of the future course of the situation in the Middle East.”
Who Pays When Power Panics
The pressure landed first on ordinary people through higher fuel costs and weaker markets. The AP said the average price for a gallon of gasoline in the United States reached $4.18 on Tuesday, the most since 2022, according to the auto club AAA. That came as Brent crude oil for June delivery climbed 2.1% to $110.50, while Brent for July rose 1.9% to $103.67. Brent prices had been around $70 in late February and were moving closer to their peak of $119 reached when worries about the war were at their heights.
The source of the squeeze was the Strait of Hormuz, whose effective closure was keeping oil tankers stuck in the Persian Gulf instead of heading to customers worldwide. The AP said the focus was the Strait of Hormuz, and that the Trump administration seemed unlikely Tuesday to accept Iran’s offer to reopen the Strait of Hormuz if the U.S. lifts its blockade on the country. The proposal would postpone discussions on the Islamic Republic’s nuclear program, something that U.S. Secretary of State Marco Rubio appeared to rule out in a Fox News interview Monday.
The Apparatus Calls It Risk
The Bank of Japan’s split vote showed the usual ritual of unelected economic managers deciding what level of pain gets passed down. The central bank kept its key interest rate unchanged, and its statement pointed to “various risks to the outlook” and the need to “pay particular attention” to the Middle East. That language sat alongside the immediate reality of a 1% drop in Japan’s Nikkei 225, one of the world’s larger losses.
The AP said weakness in markets came as slumping AI stocks and another climb in oil prices because of the Iran war helped halt Wall Street’s record-setting rally on Tuesday. It said the S&P 500 fell 0.6% from its latest all-time high, the Dow Jones Industrial Average was up 43 points, or 0.1%, as of 11:15 a.m. Eastern time, and the Nasdaq composite fell 1.1% from its own record. Nvidia sank 3.1%, Broadcom fell 5% and Micron Technology dropped 5.3%.
What the Big Players Are Doing
Corporate fortunes moved in the same storm. JetBlue Airways reported a worse loss for the start of 2026 than analysts expected, but its stock rose 3.1% after CEO Joanna Geraghty said demand from customers was strengthening through the quarter. JetBlue also announced moves to rein in fuel costs, including cutting some flying. Coca-Cola’s stock rallied 6.1% after it reported stronger profit and revenue for the latest quarter than analysts expected, helped by strength from China, the United States and India.
Treasury yields held relatively steady after a report showed U.S. consumers were feeling slightly more confident in April, when economists expected a decline. The yield on the 10-year Treasury remained at 4.35%, where it was late Monday. The Federal Reserve was scheduled to announce its latest decision on short-term interest rates on Wednesday, with widespread expectation that it would hold the federal funds rate steady and hold off on resuming cuts.
The Senate Banking Committee would vote on whether to confirm President Donald Trump’s nominee, Kevin Warsh, to succeed Fed Chair Jerome Powell, and the committee was expected to approve Warsh and send his nomination to the full Senate. In the background, the same institutions that set the terms of money, fuel, and credit kept moving the pieces while everyone else absorbed the cost.
The AP said in stock markets abroad, indexes mostly fell in Europe and Asia. Japan’s Nikkei 225 sank 1% for one of the world’s larger losses after the Bank of Japan opted in a split vote to keep its key interest rate unchanged. The Bank of Japan statement noted risks to the outlook and the need to pay particular attention to the impact of the future course of the situation in the Middle East.