While tensions with the Japanese Empire had been increasing for some time, they erupted into declared war following the attack of the Russian fleet located at Port Arthur by the Japanese in 1904 Nicholas took the controversial decision to send his fleet, which was in the Baltic at the time, around the world to Port Arthur due to British refusal to allow the Russian fleet use of the Suez Canal. This decision would prove costly as it took the Russian fleet nine months to reach Port Arthur, where it was severely defeated by the Japanese Navy. This defeat would prove humiliating for the Russian Empire as Nicholas had publicly argued that Russia would always win due to the inferiority of the Japanese army and race. Many of Nicholas' advisors and other imperial leaders advised him to seek peace terms, however Nicholas stayed the course despite the Russians' poor performance up to that point. Eventually, after further defeats, Nicholas agreed to peace terms and with the Treaty of Portsmouth of 1905 the war ended. This shocking military defeat will mark the beginning of the Russian people's outlook on Nicholas's dissent