Tokyo stocks closed lower on Friday, with the benchmark Nikkei index briefly dropping more than 2% in early trading as rising crude oil prices heightened concerns about inflation-driven economic slowdown.

Tokyo stocks closed higher on Wednesday, supported by a decline in crude oil futures as concerns over potential oil supply disruptions linked to the conflict in the Middle East eased.

Japanese stocks recorded their steepest drop since April as rising oil prices and escalating tensions in the Middle East weighed heavily on the country’s economic outlook.

Shares across Asian markets plunged as growing fears that an expanding war in the Middle East could trigger an oil shock, drive inflation higher and delay expected interest rate cuts.

Shares were mixed across Asia on Friday after a sharp sell-off in Nvidia dragged U.S. markets lower, marking the chipmaker’s worst trading day since last spring.

Asian markets mostly advanced on Thursday after stronger-than-expected earnings from Nvidia helped calm investor concerns about the sustainability of the artificial intelligence boom, even as U.S. futures edged lower.

Tokyo stocks closed higher on Tuesday, supported by renewed buying in heavyweight technology shares that had recently declined, although overall gains were limited amid continued uncertainty surrounding future U.S. tariff policies.

Tokyo stocks closed higher on Thursday, supported by gains in major technology companies and a weaker yen that boosted export-related shares.

Asian shares advanced Thursday following a rally on Wall Street led by chipmaker Nvidia, while geopolitical concerns over Iran weighed on U.S. futures and pushed oil prices higher.

Asian shares mostly climbed on Wednesday, led by gains in Japan, while several regional markets remained closed for the Lunar New Year holidays. U.S. stock futures were little changed, and oil prices edged higher.