Asian stock markets experienced a surge Wednesday morning following President Donald Trump’s statement that the U.S. would disengage from Iran within “two to three weeks,” irrespective of a potential agreement with Tehran.
Japan’s Nikkei 225 index saw gains of nearly 4% in early trading, while South Korea’s Kospi rose by over 6%. However, both indexes remain below their levels prior to the commencement of the Iran conflict on February 28.
The price of Brent crude oil for June delivery increased by 1.2%, trading at $105.36 (£79.61).
This follows a record 64% rise in the price of Brent crude for May delivery in March, triggered by Iran’s threats to target vessels in the Strait of Hormuz, a crucial shipping route.
Speaking from the Oval Office on Tuesday, President Trump stated that Iran is “begging to make a deal,” but whether an agreement is reached is “irrelevant” to the U.S. timeline.
Earlier, Iranian President Masoud Pezeshkian conveyed his country’s “necessary will” to end the war, while also demanding assurances against future aggression.
The global benchmark for oil involves the purchase of Brent crude for delivery one month in the future. Increases in this price typically lead to higher fuel prices, as oil is a key component.
According to Nicolas Daher from the Economist Intelligence Unit, the oil price surge in March marked the largest monthly gain since 1990, when Iraq’s invasion of Kuwait removed both countries’ oil from the market, causing an energy supply shock.
The surge also heightened concerns of widespread oil supply disruptions from other Gulf nations, leading to a spike in energy costs.
Daher noted that the latest price increases are fueled by expectations that the conflict will persist until at least the end of April.
Ole Hansen from Saxo Bank added that oil refiners are bidding more aggressively for crude in an effort to boost production amid global shortages of jet fuel and diesel.
Fighting has continued in the Middle East. Lebanon’s capital Beirut was struck by airstrikes on Tuesday, with the Israeli military claiming it was targeting senior Hezbollah figures.
President Trump is scheduled to address the public on Wednesday evening regarding the ongoing conflict.
Japan and South Korea have been particularly affected by the conflict due to their significant reliance on energy imports from the Middle East.
Financial markets in both countries have experienced volatility in recent weeks as investors respond to developments in the war.
The two-phase exercise – the world’s most ambitious – will see three million officials count every Indian.
People in Iran describe angry scenes and tense relationships as rifts open up over the war.
Seizing the stockpile would be one of the “most complicated special operations in history”, a former defence official tells the BBC.
Iran’s strikes on Gulf states have been especially hard for migrants who have long supported these economies to lift their families back home from poverty.
The average price at the pump has topped $4 in the US for the first time since 2022 as the Iran war continues to push up fuel prices.