TOKYO (AP) — Shares retreated in Asia and oil prices gained on Tuesday as diplomatic efforts to end the Iran war once again appeared to stall.
Despite a tenuous ceasefire, the Strait of Hormuz remains effectively closed. Much of Asia, including resource-poor Japan, relies on that route for its oil shipments.
Japan’s benchmark Nikkei 225 fell 1.1% to 59,884.12 after the central bank opted to keep its key interest rate unchanged at 0.75%.
The Bank of Japan said that while the economy was still growing moderately it was expected to slow as the war pushes for crude oil and other products higher. The vote by its monetary policy board at 6-3 was not unanimous. Pressures have been growing for Japan to gradually raise interest rates after keeping them near or below zero for years to combat deflation.
“There are various risks to the outlook,” it said in a statement. “For the time being it…
