By Marc Jones and Rocky Swift

LONDON/TOKYO, Sept 24 (Reuters) - World financial markets remained on edge on Thursday after concerns about the Iran war and inflation pain had triggered the sharpest selloff in US Treasuries and other benchmark government bonds since last year's Liberation Day turmoil.

Bond yields were nudging higher again in Europe as ‌oil prices moved back above $105 a barrel and as traders waited for what could be a tense meeting between US President Donald Trump and Chinese counterpart Xi ‌Jinping in Washington later.

The 10-year US Treasury yield - the benchmark of the $29-trillion Treasury market that anchors pricing for virtually all financial assets globally - touched a new post-financial-crisis high of 5.145% in early European trading.

The difference between what France and ​Germany pay to borrow was also at its widest since Mario Draghi's "Whatever it Takes" speech of 2012, while Japan's 10-year yield had jumped to a 30-year high overnight in Asia.

Strong PMI data and a weak US government bond sale had compounded Wednesday's global rout and AXA's Chief Economist Gilles Moec said all the ingredients were now in place for a rise in long-term interest rates.

"Inflation is high, central bankers are giving hawkish messages, there's competition from the funding needs of the tech sector and there are no reassuring signs on the US debt trajectory," Moec said.

"They are all fairly big macro ‌issues and on top of that you have the binary geopolitical ⁠issue of what is happening in the Middle East."

UNDER PRESSURE

The latest rise in oil came as doubts grow again about the chance of a US-Iran deal, despite the talks at the UN this week. Reports have also suggested that Trump is considering a possible export ban on US-produced diesel.

Analysts ⁠at Deutsche Bank pointed to Iran foreign ministry comments that it had presented a list of conditions to the US for restarting truce talks, that included the acceptance of a shipping route agreed by Oman and Iran, along with an end to the naval blockade and the release of Iran's frozen assets.

And Iran's President Pezeshkian struck a defiant tone, saying that Iran would not allow freedom of navigation through Hormuz ​while ​the US blockade and sanctions remained in place.

MSCI's main world share index, the pan European STOXX 600 and ​Wall Street futures all moved lower amid the unsettled mood. [.EU]

History offers some ‌guidance on how painful spikes in bond market borrow costs can be for stocks. The MSCI world index halved in value after the last time the 10-year Treasury yield broke 5%, which was just before the global financial crash.