Japan Breaking News! Goldman Sachs Suddenly Announces: Downgrade! Iran, US Latest Statements!

The situation in Iran continues to impact global capital markets!

Just now, Goldman Sachs announced that due to escalating geopolitical concerns, they are lowering their three-month target for the Tokyo Stock Exchange Index from 4,200 to 3,900. Moody’s also stated that the Middle East conflict has increased the risk of inflation accelerating again, and the Bank of Japan may raise interest rates to 1% by mid-year. On Monday (March 16), during trading hours, Japanese stocks plummeted sharply, with the Tokyo Stock Exchange Index and Nikkei 225 Index both falling over 1% at one point. As of press time, the declines in these indices have narrowed.

Latest updates on the Iran situation: U.S. President Trump on the 15th (local time) said that in military operations against Iran, the U.S. and Israel are generally aligned on targets. That evening, Trump also stated that the U.S. is discussing with other countries to jointly ensure the safety of navigation through the Strait of Hormuz, but does not plan to “declare an end” to military actions against Iran.

Iranian Foreign Minister Araghchi on the 15th said Iran has never requested a ceasefire from the U.S., nor has it requested negotiations. Iran will continue to defend itself until Trump recognizes that this is an “unwinnable illegal war.”

In the early hours of March 16 (local time), Iraq’s Shia militia group “Blood Guard Brigade” issued a statement claiming that in an attack near Baghdad International Airport on the “Victory Camp” base, 6 U.S. soldiers were killed and 4 others injured. The U.S. has not responded to this yet.

Japanese stocks plunge sharply

Today, Japanese stocks experienced intense volatility, with a significant drop during trading. The Nikkei 225 Index once fell nearly 700 points, with a decline exceeding 1.30%; the Tokyo Stock Exchange Index also dropped 1.20%. As of the time of reporting, the Nikkei 225 was down 0.43%, and the Tokyo Stock Exchange Index down 0.56%. Among individual stocks, Tokyo Electric Power fell nearly 5%, Kawasaki Heavy Industries and Suzuki Motor dropped over 2.5%, and Mitsubishi Electric declined close to 2%.

Due to recent escalations in geopolitical tensions, major investment bank Goldman Sachs has lowered its three-month target for the Tokyo Stock Exchange Index from 4,200 to 3,900, and its six-month target from 4,400 to 4,100.

Goldman Sachs Research now expects crude oil exports through the Strait of Hormuz to decrease by 21 days, up from the previous estimate of 10 days. They also raised their forecast for Brent crude oil prices, expecting $110 per barrel in March, $85 in April, and then a decline to $71 in the fourth quarter. Additionally, Goldman Sachs has lowered its forecast for Japan’s real GDP growth in 2026 from 0.8% to 0.5%.

The Bank of Japan will announce its interest rate decision on Thursday. Moody’s Analytics stated in a report that they expect the Bank of Japan to keep rates unchanged this week and possibly raise them to 1% around mid-year. The report notes that the Middle East conflict has increased the risk of inflation accelerating again, but the uncertainty caused by the conflict will likely keep the Bank of Japan on hold. The agency also suggests that a weaker yen could prompt the BOJ to raise rates earlier later this year. However, slowing wage growth and sluggish economic data make it difficult to support a more aggressive rate hike above 1%.

Japanese Finance Minister Shunichi Suzuki said he is closely monitoring the foreign exchange market with a high sense of urgency. During Asian morning trading today, the yen appreciated 0.3% to 159.3 against the dollar, but the gain has since narrowed to 0.12%. Suzuki stated that if necessary, authorities are prepared to take bold action to address currency fluctuations. He also noted that G7 members are concerned about extreme volatility in markets, including exchange rates.

Recently, rising oil prices have also weighed on U.S. stocks. JPMorgan Chase Private Bank recently warned that if oil prices do not fall back, the recent sell-off in the S&P 500 could intensify.

Kriti Gupta, Managing Director at JPMorgan Chase Private Bank, and senior economist Joe Seydl warned that if oil prices remain above $90 per barrel for an extended period, it could trigger a 10%–15% correction in the S&P 500 and spill over into international and emerging markets.

Latest updates on the Iran situation

According to CCTV News, on March 15 (local time), President Trump stated that in military operations against Iran, the U.S. and Israel are generally aligned on targets, though he acknowledged their specific objectives might not be exactly the same.

When asked whether Israel’s strategy differs from the U.S., Trump said, “I believe we do share similar goals, but there may be some differences.”

Trump also emphasized close coordination between the two militaries, stating, “The relationship between the two countries has always been very good. The coordination between our armed forces is also very tight.” He pointed out that Israel is equipped with and operates a large number of U.S.-made weapons systems.

According to Xinhua News Agency, Trump on the evening of the 15th said that the U.S. is discussing with other countries to jointly ensure the safety of navigation through the Strait of Hormuz, but does not plan to “declare an end” to military actions against Iran.

While returning from Florida to Washington on Air Force One, Trump responded to media questions. He said that the U.S. is working with about seven countries to secure the Strait of Hormuz, and the response has been “positive so far.” He added, “It’s worth noting which countries will refuse to participate in this small effort to keep the shipping lanes open.” When asked which countries have expressed willingness to assist, Trump said, “It’s too early to say.”

Trump also claimed that the U.S. has “basically defeated Iran,” with “astonishing” military gains. He suggested Iran might organize sporadic counterattacks but cannot cause major disturbances. The U.S. launched a surprise attack on Halek Island, leaving only the oil pipeline intersection intact, and can strike the island at any time.

Iranian Foreign Minister Araghchi, in an interview with CBS, said Iran has never requested a ceasefire from the U.S., nor has it requested negotiations. Iran will continue to defend itself “for as long as it takes,” until President Trump recognizes that this is an “unwinnable illegal war.”

Regarding navigation in the Strait of Hormuz, Araghchi disclosed that some countries have contacted Iran, hoping their ships can pass safely. Iran is willing to negotiate with these countries, but the final decision will be made by the Iranian military.

On Iran’s nuclear program, Araghchi stated that before the U.S. and Israel launched their war, Iran had already made significant concessions in indirect nuclear negotiations with the U.S., offering to dilute uranium to 60% enrichment to demonstrate that Iran has no intention of seeking nuclear weapons.

He said Iran’s nuclear materials are currently buried beneath nuclear facility ruins, and Iran has no plans to retrieve them for now. If needed in the future, retrieval will be conducted under IAEA supervision.

(Source: Securities Times)