Major shipping stocks sharply outperformed the broader Tokyo market on the 18th, with Nippon Yusen and Kawasaki Kisen Kaisha both reaching fresh all-time highs as investors positioned for a possible rise in ocean freight rates tied to worsening Middle East tensions. NYK Line briefly gained 5% from the previous day to 6,797 yen on a stock-split-adjusted basis and was also bought to 6,756 yen, up 266 yen, or 4.09%, from the prior close, extending its run of record highs. Kawasaki Kisen also set a new peak, while Mitsui O.S.K. Lines rose as much as 5%, leaving Japan's three biggest shipping groups advancing together. The Nikkei shipping sub-index rose for a fourth straight session to a record high even as the Nikkei 225 stayed weak. The move followed the expiry on the 17th of a 60-day negotiation period aimed at securing a final agreement to end hostilities between the United States and Iran. Investors are increasingly betting that if talks stall and navigation risks around the Strait of Hormuz return, tanker and container shipping rates could rise, especially if detours around the Red Sea and Hormuz become routine and effectively tighten vessel supply. Those expectations are feeding hopes for a tailwind to shipping companies' fiscal 2026 earnings, though the trade remains highly sensitive to geopolitics and could reverse sharply if tensions ease. Market participants say the sector is standing out as a hedge in a broader Japanese market weighed by higher oil risks, with the next signals likely to come from renewed U.S.-Iran talks and actual freight-rate data.