The Nikkei share average fell 0.3% by Friday’s midday recess and was on course for a roughly 4% weekly decline, its steepest since the week ended July 17. The Topix fell 0.1% and was set for a 3.4% weekly loss. Middle East tensions pushed crude oil about $2 a barrel higher after US Treasury Secretary Scott Bessent said Washington would impose "the toughest sanctions in history" on Iran, raising concerns that prolonged energy costs will keep inflation elevated. Japan’s 10-year government bond yield rose 3 basis points to 2.875%. Fast Retailing fell 4%, SoftBank Group declined 1.3%, while shipping stocks rallied 2.8% as the Strait of Hormuz remained effectively closed and investors anticipated higher freight rates. The weakness followed losses on Wall Street and a renewed selloff in US long-term bonds despite Treasury plans to at least double sovereign bond buybacks. Earlier in Friday trading, the Nikkei was down 0.5% at 65,907.18 at 0020 GMT; Asics fell 3.5%, Fast Retailing dropped 3.4% and Sumco declined 3.2%.