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The tsar was to quick to agree to negotiate a peace treaty to end the Russo Japanese war mainly because

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The Russian command in the Far East, formed by Admiral Yevgeni Alekseyev and General Aleksei Kuropatkin, was incompetent, and it's troops, insufficient. Reinforcements arrived from European Russia on the single-track Trans-Siberian railway, very slow and interrupted at Baikal lake. These and other reasons, such as Japan's surprise attack, meant that the war resulted in a surprising Japanese victory, which made Japan a new world power.

The Tsar was forced to negotiate. The result was the humiliation of a Western nation. An armistice between the two governments was concluded: although the Russians were very weakened by the 1905 Revolution, Japanese finances were totally exhausted and the Japanese Empire no longer had the means to completely destroy the bulk of Russian troops in the Far East. A peace conference was organized in Portsmouth (USA), thanks to the mediation of US President Theodore Roosevelt. The negotiations concluded with a peace treaty signed in September 5th of 1905.

User STerliakov
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Because after the Battle of Tsushima, the Russian fleet was worn out and merely destroyed, and they could no longer achieve their goal of preserve Port Arthur. Accordingly, the defeat and the coercion of the revolution, forced the Tsar to agree to the peace treaty, and Japan won the war in 1905, putting the rest of the world on alert.

User Bradley D
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