The Japanese stock market faces renewed downward pressure after the Nikkei 225 tumbled 1,237.36 points, or 1.89 percent, to close at 64,179.27 on Wednesday.
The decline came just one day after the index snapped a three-day losing streak in which it had plunged more than 4,300 points, or 6.5 percent, in total.
The Nikkei is now tipped to open under water again on Thursday, with the global forecast for Asian markets remaining broadly weak.
Escalating tensions in the Middle East are driving the cautious mood, with European and U.S. markets both finishing lower and setting a negative tone for Asian bourses.
Softbank Group was among the hardest hit, plummeting 8.33 percent, while Mitsubishi Electric plunged 4.24 percent and Panasonic Holdings tanked 4.28 percent on the day.
Automobile producers also suffered notable losses, with Nissan Motor tumbling 3.00 percent and Mazda Motor retreating 2.54 percent, while Toyota Motor fell 0.57 percent.
Financial shares offered little relief, with Mizuho Financial dropping 0.99 percent, though Sumitomo Mitsui Financial managed a modest gain of 0.73 percent.
The lead from Wall Street was sharply negative, with the Dow tumbling 953.33 points, or 1.87 percent, to finish at 49,918.78, ending at session lows.
The NASDAQ tanked 509.32 points, or 1.98 percent, to end at 25,169.50, while the S&P 500 slumped 119.66 points, or 1.62 percent, on the session.
Selling pressure on Wall Street intensified after President Donald Trump ramped up threats against Iran following a recent exchange of military attacks between the two nations.
Trump’s latest warnings came after U.S. Central Command said forces completed “self-defense strikes” against Iran on Tuesday at the president’s direction, in response to the downing of a U.S. helicopter.
Crude oil prices surged on the escalating conflict, with West Texas Intermediate crude for July delivery rising $2.26, or 2.56 percent, to $90.46 per barrel.
Concerns over the Strait of Hormuz remaining closed added further upward pressure on oil prices, amplifying fears about global supply disruptions.
On the economic front, the Labor Department reported that U.S. consumer prices increased in line with estimates in May, with core consumer price growth also matching expectations.
