Japanese equities fell sharply on Tuesday as renewed U.S.-Iran hostilities and a halt in traffic through the Strait of Hormuz sent oil prices higher and revived concerns about persistent inflation and rising bond yields. The Nikkei 225 dropped 2.5% to 67,460.73, while the Topix lost 1.1% to 4,140.22, ending a five-session rally in which the Nikkei had gained 5.5%. Growth and technology stocks led the decline, with electrical appliance makers falling 3.7%, Tokyo Electron down 6.2% and Advantest off 5.1%. Shipping stocks stood out, with the marine transport sub-index rising 3.6% on expectations that supply disruptions could boost freight rates. Wataru Akiyama, an equities strategist at Nomura Securities, said rising interest rates tend to expose the relative overvaluation of share prices and warned that persistently high inflation in Japan and the U.S. could weigh on stocks. The move highlighted how external geopolitical shocks, rather than domestic fundamentals, can quickly reshape risk appetite, especially in a market sensitive to energy prices, inflation and bond yields.