TOKYO, March 13 (Reuters) - Japan's Nikkei share average

fell nearly 2% on Friday as an escalating Middle East conflict

drove crude oil prices higher, heightening inflation concerns

and prompting investors to shun riskier assets.

The Nikkei was down 1.7% at 53,502.50, as of 0010

GMT, on track for a second consecutive weekly decline. The

broader Topix slid 1.2% to 3,607.26.

Iran's new Supreme Leader Mojtaba Khamenei said Iran will

fight on and keep the Strait of Hormuz shut as leverage against

the U.S. and Israel, while Iran stepped up attacks on oil and

transport facilities across the Middle East.

There were 7 advancers on the Nikkei index against 115

decliners.

Shares of Honda Motor ( HMC ) tanked 6.1% to their biggest

percentage drop since February 2025, after Japan's

second-largest automaker said it would slip to its first annual

loss in almost 70 years as a listed company over massive

restructuring costs at its EV business.