Rising oil prices could delay the Bank of Japan's planned interest rate hikes.

Nomura: BOJ Likely to Delay Rate Hike as Oil Risks Mount

Japan faces "unprecedented risks" from surging crude prices and concerns over oil product supplies, according to Nomura economists. The Bank of Japan is likely to delay a rate hike.

BOJ Governor Kazuo Ueda, in a Monday speech, expressed greater concern about the downside risks the Middle East conflict could pose to the economy compared to his March press conference. Ueda said that if the conflict persists, it would hit Japanese business operations through supply chain disruptions.