Nikkei 225 breaches 64,000 mark as oil prices fall on Hormuz hopes

Japan’s Nikkei 225 index surged past the 64,000 mark for the first time on Monday, 25 May 2026, marking a significant intraday high for the benchmark. The rally was underpinned by a sharp decline in global oil prices, which bolstered risk appetite among investors during a session characterised by holiday-thinned trading volumes.

The movement in Tokyo’s equity markets coincided with reports that negotiations between the United States and Iran towards a ceasefire had advanced. This diplomatic development prompted a reassessment of geopolitical risk premiums, leading to a notable drop in energy costs that supported broader market gains.

New York crude oil prices fell into the 91-dollar-per-barrel range as traders priced in the potential for a ceasefire and the subsequent reopening of the Strait of Hormuz. The expectation of restored supply flows through the critical shipping lane contributed significantly to the downward pressure on oil prices, which in turn lifted sentiment across Asian equities.

The Nikkei 225 rose by more than 1,000 yen during the session, briefly touching the 64,000 yen level. While the original reporting headline suggested the index topped 65,000, the structured data confirms the breach of the 64,000 threshold as the primary milestone achieved during this trading day.

Market analysts note that the rally occurred against a backdrop of ongoing tensions between the US and Iran, with diplomatic efforts currently underway to de-escalate the situation. The extent to which holiday-thinned trading amplified the magnitude of the Nikkei’s rise remains a point of observation, as lower liquidity can often exaggerate price movements.

The potential duration and long-term impact of these ceasefire negotiations on oil prices remain uncertain. Investors are monitoring the situation closely, as any breakthrough or collapse in US-Iran talks could rapidly alter market dynamics and energy pricing structures in the coming weeks.