Japanese shares tumbled at open on Friday, tracking losses on Wall Street, as a fresh spike in oil prices intensified concerns that the conflict in Iran will further disrupt energy supplies and drive inflation.

The Nikkei 225 dropped 865.7 points, or 1.6%, to 53,587.30.

Brent crude settled above $100 a barrel for the first time since 2022 on Thursday, according to media reports, with Goldman Sachs warning that oil prices could surpass the 2008 peak of $147.50 if disruptions in the Strait persist through March.

Iran also said that it would keep the chokehold on the Strait of Hormuz, intensifying investor concerns about oil supply.

Meanwhile, the International Energy Agency noted that the conflict is causing unprecedented turmoil in oil markets, affecting 7.5% of global supply and an even larger share of exports, the reports said.