The Nikkei 225 Index fell 0.7% to around 61,000, while the broader Topix Index slipped 0.5% to 3,845 on Monday, marking a third straight session of losses for Japanese equities as escalating Middle East tensions kept oil prices elevated. President Donald Trump warned that Tehran is running out of time to secure an agreement with Washington, while Iranian media reports indicated the two sides remain far apart in negotiations. Japanese markets also followed Wall Street lower after Friday’s sharp selloff, when Treasury yields surged on expectations that the Federal Reserve may need to raise interest rates this year to counter inflationary pressures linked to the Iran conflict. Technology shares led the downturn, with notable declines from Kioxia Holdings (-8.3%), Fujikura (-2.4%), and SoftBank Group (-1.7%). In corporate developments, Mizuho Financial tumbled nearly 7% following reports that it is considering a potential investment in Rakuten Bank.