The Nikkei 225 Index traded flat around 65,270 in early Wednesday trading as investors weighed higher oil prices, inflation risks and increased expectations for interest rate hikes. Crude prices continued to rise after U.S. forces destroyed five Iranian crude tankers near Kharg Island in retaliation for attempted missile attacks on a U.S. warship. The yen strengthened to its highest level in nearly seven months, while U.S. Treasury Secretary Scott Bessent said he had good insight into the Bank of Japan's plans to support the currency and warned traders against betting against him. SoftBank Group rose 3.9%, Fujikura gained 7.9% and Lasertec advanced 5.6%, while Nintendo, Recruit Holdings and Fast Retailing fell. An earlier market update had reported the Nikkei up 0.1% at 65,336.26 and the dollar at 153.34 yen.