(Updates with closing prices)

By Junko Fujita

TOKYO, March 12 (Reuters) - Japan's Nikkei share average

ended lower on Thursday as global oil prices resumed their

climb, while concerns grew that the U.S.-Israeli war with Iran

could drag on.

The Nikkei fell 1.04% to 54,452.96, after falling as

much as 2.2% earlier in the session.

The broader Topix slipped 1.32% to 3,649.85.

"The market is betting that the war will be prolonged," said

Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

"The oil prices rose, and that prompted investors to sell

stocks."

The benchmark Brent crude jumped back above $100 a barrel as

Iran stepped up attacks on oil and transport facilities across

the Middle East, raising fears of a prolonged conflict and

oil-flow disruptions through the Strait of Hormuz.

Japan, which is dependent on the Middle East for around 95%

of its oil supplies, said it would release about 80 million

barrels of oil from its strategic reserves, equivalent to 45

days of supply, to mitigate global disruptions.

Technology stocks fell, with Advantest ( ADTTF ) and SoftBank

Group losing 1.55% and 3.6%, respectively. Tokyo

Electron ( TOELF ) fell 1.92%.

All but three of the Tokyo Stock Exchange's 33 industry

sub-indexes dropped, with the real estate sector losing 3.56% to

become the worst performer. The mining sector rose

2.73%.

Bucking the broader market trend, Kyoto Financial Group ( KYFGF )

jumped 7.43% after the bank more than doubled its

annual net profit forecast, citing profits from the sale of

Nintendo ( NTDOF ) shares. It also expanded its share buyback

plans.

Shares of Nidec ( NNDNF ) rose 3.9% after a government filing

showed activist investor Oasis Management held a 6.74% stake in

the scandal-hit electric motor maker.

Shares of heavy machinery makers rose, with Mitsubishi Heavy

Industries ( MHVYF ) and Kawasaki Heavy Industries ( KWHIF )

rising more than 3% each.