(Updates share prices)

By Junko Fujita

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

fell 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 was down 1.3% at 54,307.84 as of 0218

GMT, and the broader Topix slipped 1.47% to 3,644.32.

"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."

Oil prices climbed on Thursday after Iraqi security

officials said Iranian explosive-laden boats had hit two fuel

oil tankers amid other global supply disruptions from the

U.S.-Israeli war on Iran.

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 2.47% and 3.06%, respectively. Tokyo

Electron ( TOELF ) fell 1.85%.

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

sub-indexes dropped, with the real estate sector losing 3.3% to

become the worst performer. The mining sector inched

up 0.17%.

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

jumped 7.4% 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 3.46% 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 Kawasaki Heavy

Industries ( KWHIF ) and Mitsubishi Heavy Industries ( MHVYF )

rising 3.76% and 2.06%, respectively.