High oil prices force Japanese stock analysts to lower company profit expectations.

With the breakdown of peace talks between the US and Iran pushing up crude oil prices, Japanese companies are facing an increasingly bleak outlook for the earnings season. As of last Thursday, stock analysts have lowered profit expectations for 113 companies in the Nikkei 500 index. This is the first time since July that the number of profit downgrades has exceeded upgrades. The closure of the Strait of Hormuz, through which over 90% of Japan's oil imports pass, poses a significant risk for Japanese chemical companies and other industries highly dependent on oil. The surge in oil prices has led Nomura Securities to lower profit forecasts for multiple companies, including Kao Corporation and Unicharm Corporation.