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  • Asia stocks jump after Trump suggests Iran war could end in weeks

    Asia stocks jump after Trump suggests Iran war could end in weeks

    Asian stock markets jumped on Wednesday after President Donald Trump said the US will leave Iran in “two to three weeks” regardless of whether a deal is struck with Tehran.

    Japan’s Nikkei 225 index gained by 4.9%, while the Kospi in South Korea rose by 8.6% in afternoon trading. But both indexes are still trading lower than before the Iran war started on 28 February.

    The price of Brent crude oil for delivery in June was trading around 1% lower at about $103 (£77.63) a barrel.

    It comes after the price of Brent to be delivered in May rose by a record 64% in March as Iran threatened to attack vessels using the Strait of Hormuz, effectively shutting the key shipping route.

    Speaking from the Oval Office on Tuesday, Trump said Iran is “begging to make a deal” but whether it happens or not is “irrelevant” to America’s timetable.

    Earlier, Iranian President Masoud Pezeshkian said his country has the “necessary will” to put an end to the war but demanded certain guarantees to prevent the recurrence of any future aggression.

    The global benchmark for oil is a contract to buy a barrel of Brent crude one month in the future. When this price rises, it typically pushes up fuel prices too, because oil is a key component.

    The oil price surge in March was the biggest monthly gain since 1990 when Iraq’s invasion of Kuwait took both countries’ oil off the market, resulting in an energy supply shock, said Nicolas Daher from the Economist Intelligence Unit.

    It also raised fears of a widespread oil supply disruption from other Gulf countries, leading to a surge in the cost of energy.

    This latest spike in prices has been driven by expectations that the conflict will continue until at least the end of April, Daher said.

    Oil refiners are also bidding more aggressively for crude as they try to boost production as markets around the world are hit by shortages of jet fuel and diesel, said Ole Hansen from Saxo Bank.

    The fighting has continued in the Middle East. Lebanon’s capital Beirut was hit on Tuesday by airstrikes, with Israel’s military saying it was targeting a senior Hezbollah figures.

    Trump is expected to address the public on Wednesday evening about the war.

    Japan and South Korea have been hit particularly hard by the conflict as they are heavily reliant on energy from the Middle East.

    Financial markets in both countries swung sharply in recent weeks as investors react to developments in the war.

  • Asia stocks tumble for third day, oil rises as markets track Iran war

    Asia stocks tumble for third day, oil rises as markets track Iran war

    Asian stock markets fell for a third day in a row on Wednesday and oil prices moved higher as investors watch developments in the US-Israel war with Iran.

    South Korea’s Kospi index plunged by 10% after trading was halted temporarily by a so-called circuit breaker, which aims to avoid panic selling. Japan’s Nikkei 225 was down by 3.6%, while Hong Kong’s Hang Seng index fell by 3%.

    Brent crude oil was about 2% higher in Asia morning trade after surging over the last two days.

    The conflict in the Middle East has rattled financial markets and global energy prices have soared this week after vessels near the crucial Strait of Hormuz shipping lane have come under attack.

    Around a fifth of the world’s oil and gas usually flows through the narrow waterway between Iran and the United Arab Emirates (UAE), but traffic has almost entirely halted following Iran’s threats to “set fire” to ships.

    Traffic through the strait has almost completely halted following Iran’s threats.

    On Tuesday, President Donald Trump said the US Navy will protect ships in the region “if necessary” in a bid to stop the energy supply crunch sparked by the war.

    He said Washington will provide risk insurance “at a very reasonable price” to all shipping firms in the region to “ensure the FREE FLOW of ENERGY to the WORLD”.

    Stock markets have fallen sharply since the US and Israel attacked Iran over the weekend.

    South Korea’s Kospi is having one of its worst days in decades. The exchange was automatically halted for 20 minutes in Wednesday morning trading, as part of an emergency mechanism that is triggered by major falls and is designed to curb panic selling.

    It was the first time the exchange’s so-called circuit breaker had been activated since August 2024.

    Most Asian stock markets have been hit particularly hard as the region imports large amounts of energy from the Middle East that has to pass through the Strait of Hormuz.

    The Kospi’s slide reflects how “fragile” market sentiment has been effected by the conflict, said Jack Lee from the research organisation China Macro Group.

    In China, the Shanghai Composite index was 1.25% lower on Wednesday afternoon. Compared to most other Asian countries it has so far seen relatively little impact.

    China’s financial market has been “buffered”, in part because Beijing has alternative sources of energy, including oil from Russia, said Lee.

    But, with the war now in its fifth day, investors are concerned about the potential of it turning into a protracted conflict, he added.

    On Tuesday, the Kospi, which reopened after a public holiday on Monday, fell by more than 7%. Japan’s Nikkei lost more than 3%, while Hong Kong’s Hang Seng and the Shanghai Composite in mainland China also fell.

    The UK’s FTSE 100 closed 2.75% lower, while Germany and France’s main indexes lost more than 3.4%.

    In the US, the S&P 500 index opened sharply lower but recovered some of those losses, ending nearly 1% down.

    Tehran has retaliated with strikes across the Middle East, causing major disruption to shipping and commercial flights.

    The conflict has weighed heavily on the shares in export-reliant countries like South Korea and Japan, which are especially vulnerable to geopolitical shocks that put shipments at risk.