Mumbai, May 18 -- Japanese stocks closed lower on Monday, extending losses for a third consecutive session as rising tensions in the Middle East kept oil prices high and hurt investor sentiment. The Nikkei 225 fell 0.97% to 60,816, while the broader Topix Index also dropped 0.97% to 3,827.

Markets were pressured after U.S. President Donald Trump warned that Iran was running out of time to reach an agreement with Washington. Reports from Iranian media also suggested negotiations between the two sides remain far apart, adding to concerns over the conflict and its impact on global inflation and energy prices.

Japanese shares also tracked Wall Street lower following Friday's sharp selloff in the U.S., where Treasury yields jumped on expecta...