SYDNEY - Asian shares fell on Friday as oil prices stormed back above $100 a barrel amid an intensifying ​conflict in the Gulf, rattling bond markets and reviving fears of a fresh inflation shock.

Brent crude held at $100.85 a barrel, after surging ‌7 percent overnight to a two-month high of $102. With the conflict showing little signs of abating, Brent has soared nearly ​40 percent this month alone.

"Two of the world’s busiest shipping corridors are under threat in the same month, and markets are ⁠only just beginning to work out what that means," said Nigel Green, CEO of deVere Group, a financial advisory firm.

"With that ceasefire now collapsed and oil ​back above $100, the drop which gave the Fed room to relax may already be reversing ... This looks less like a short-lived spike and more like a genuine ​reopening of the inflation question."

News that the US administration will impose higher tariffs on goods from 60 trading partners also did not help the inflation picture, with 30-year Treasury yields nearing their highest levels since 2007 and benchmark European borrowing costs climbing to highs last seen in 2011.

Markets bet central banks will have to turn more hawkish, with a one-in-three chance of ​a rate hike from the Federal Reserve as soon as next week — a sea change from merely a week ago — while a move in September is ​more than fully priced in.

The European Central Bank left rates unchanged overnight but a September rate hike is about 70 percent priced in.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside ‌Japan fell ⁠1 percent and Japan’s Nikkei slid 2.9 percent. South Korea's KOSPI dropped 3.7 percent.

Nasdaq futures were last up 0.1 percent as bumper results from Intel offered only fleeting support in the face of broader worries about oil and rates.

Wall Street fell overnight after Alphabet and Tesla, the first two of the so-called "Magnificent Seven" megacap tech companies to report this season, spooked investors as both burned through cash in their most recent quarter for their big spending on AI infrastructure.

Dollar catching yield support

In bond markets, the benchmark 10-year US ​yield held at 4.7013 percent on Friday, after ​hitting an over 18-month high of ⁠4.7030 percent overnight. The 30-year bond yields were steady at 5.17 percent, just below a 19-year peak of 5.201 percent.

The higher Treasury yields helped the US dollar up generally, with the dollar index holding at 101.46 after a 0.3 percent rise overnight to the highest ​level this month.

The beleaguered yen was pinned near 40-year lows at 163.89 per dollar, drawing a warning from the US ​Treasury that excess volatility ⁠in the currency was undesirable.

Japan's finance minister has repeatedly issued verbal warnings about a possible intervention in the currency market, after carrying out yen-buying operations in April and May, with the yen weakening beyond the 160 level.

"Against the backdrop of surging energy prices, the hawkish Fed repricing, and the yen's loss of safe-haven status, any comments ⁠from Japanese ​officials today about being ready to intervene or faster BoJ rate hike will likely be ignored," ​said Tony Sycamore, an analyst at IG.

"At this point, trying to support the yen here would be akin to standing in the way of a bullet train."

Precious metals took a hit, with gold ​off 0.1 percent at $4,043 an ounce after falling 2 percent overnight. Silver held at $57.45 an ounce after a decline of 3.4 percent overnight.