Tokyo stocks drop for third day on war in Middle East and growing uncertainty

Tokyo stocks declined for a third straight day, as the war in the Middle East continued and concerns grew that the conflict could drag on and oil prices could rise further.

The Nikkei 225 stock average dropped about 4% intraday and closed at 54,245.54, down 3.61%. The benchmark dropped 3.06% on Tuesday and 1.35% on Monday.

Overnight, stocks in the United States plummeted and then recovered some of the losses after U.S. President Donald Trump said he might have U.S. ships escort tankers through the Strait of Hormuz, which Iranian authorities say is closed.