On April 4, the Tokyo stock market experienced a substantial decline in the Nikkei Average, which began the day falling more than 1500 yen to around 54,700, marking its third consecutive day of losses. Concerns regarding the future of the global economy have intensified following military actions by the U.S. and Israel against Iran, which negatively impacted investor sentiment and led to a decline in major stock indices in the prior U.S. trading sessions.

In the New York stock market on April 3, the Dow Jones Industrial Average ended down by 403.51 points (0.83%), closing at 48,501.27. Investor anxiety has increased regarding the potential for prolonged conflict over Iran and soaring oil prices, prompting a risk-averse stance among traders. This situation was exacerbated when President Trump announced on social media that the U.S. Navy could escort oil tankers through the vital Strait of Hormuz, which resulted in a temporary drop in oil prices after the announcement.

Despite efforts to stabilize the situation, the Nikkei Average began trading on April 4 down by 808 points, with significant losses across the board, particularly in oil-related stocks. With expectations growing that the conflict could have lasting negative effects on the economy as oil prices continue to surge, the index has dropped a total of 2,571 yen over two to three days, with expectations that it might dip below the psychological threshold of 55,000 yen, a level not seen since early February.