* USD/JPY gain as 10-yr U.S. yield edged back towards 3 pct
* Yields rise as oil rallies after U.S. pulls out of Iran deal
* Italian political concerns puts fresh pressure on euro
* Dlr stabilises after Trump's decision to pull out of Iran deal
* A$ hits fresh 11-mth low in face of broad U.S. dlr strength (Updates throughout)
By Shinichi Saoshiro
TOKYO, May 9 (Reuters) - The dollar rose to a six-day high against the yen on Wednesday as crude oil prices rallied and pushed Treasury yields higher after U.S. President Donald Trump pulled out from an international nuclear deal with Iran.
The greenback also gained on the euro on as concerns about Italian political turmoil hurt the common currency.
The dollar was 0.45 percent up at 109.605 yen JPY= after racing to 109.640, its highest since May 3.
The U.S. currency was lifted as long-term Treasury yields climbed to two-week peaks with crude oil prices surging more than 2 percent to their highest since November 2014.
"The dollar is firmer overall, particularly against the yen, stirred once again in the aftermath of President Trump's decisions with U.S. yields rising and oil on the move," said Bart Wakabayashi, Tokyo Branch Manager of State Street.
"Opinion seems divided among market players on how far higher U.S. yields can go, so the dollar could be in for turbulence going forward."
The 10-year Treasury note yield US10YT=RR was about 2 basis points higher at 2.991 percent. A rise above 3.035 scaled on April 25 would take it to its highest since early 2014.
Trump on Tuesday pulled the United States out of an international nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies. euro lost 0.15 percent to $1.1847 EUR= after sliding as low as $1.1838 overnight, its weakest since Dec. 22.
The euro, already under pressure from weak economic indicators and widening U.S.-euro zone interest rate differentials, was also hit by political developments in Italy.
Sentiment towards the euro cooled after Italian President Sergio Mattarella's call to bickering political parties to rally behind a "neutral government" were met with immediate opposition and raised the prospect of elections being held as early as July. dollar is in a firm position to gain against its European peers as rhetoric from central banks such as the ECB and the Band of England is perceived to have turned dovish," said Shin Kadota, senior strategist at Barclays (LON:BARC) in Tokyo.
The euro was 0.25 percent higher at 129.800 yen EURJPY= after plumbing a six-week low of 129.240 on Tuesday. It was on track to end a seven-day losing run.
Sterling traded at $1.3542 GBP=D3 following a decline to a four-month low of $1.3485 overnight.
The pound has fallen heavily in recent weeks on expectations the BoE would not, as earlier believed, tighten monetary policy because of a relatively weak economy and as investors piled into a rallying dollar.
The Australian dollar extended its overnight slide to touch an 11-month low of $0.7428 AUD=D4 .
Pressured by the dollar's broad strength, the Aussie has slid despite an upbeat budget from the country's government.