The Nikkei 225 Index rose 0.6% to above 58,800, while the broader Topix Index gained 0.8% to 3,790 on Monday, recouping losses from the previous session even as US-Iran tensions escalated again. The US seized an Iranian-flagged cargo vessel in the Gulf of Oman, while Tehran reasserted control over the Strait of Hormuz following Washington’s refusal to lift its blockade on Iranian ports. Ongoing disruptions in the strategic waterway have triggered an unprecedented energy supply shock, heightening inflation risks and threatening global growth, with oil-importing economies such as Japan particularly exposed. However, Japanese equities had rallied to fresh record highs last week, supported by optimism over a potential peace deal and renewed enthusiasm for artificial intelligence-driven sectors. Among notable gainers were Lasertec (5.2%), SoftBank Group (1.9%), Fujikura (1.7%), Mitsubishi Heavy (4.7%), and Keyence (2.1%).