Oil Jumps Despite Trump Assuring War Will End ‘Very Soon’Asian Stocks Rally

Asian stocks rallied on Wednesday after US President Donald Trump said the Middle East war would be over in up to three weeks and his Iranian counterpart said Tehran had “the necessary will” to bring it to an end.

But while the remarks provided hope for an end to the month-long crisis, crude prices jumped on lingering worries about the closure of the strategic Strait of Hormuz.

The Numbers

• Brent Crude: Trading at $105 a barrel

• US petrol prices: Topped $4 a gallon (R17.86 per litre) for the first time in four years

Trump’s Comments

Trump told reporters in the Oval Office the United States would be leaving Iran “very soon,” perhaps within “two weeks, maybe three.”

“We want to knock out every single thing they have,” Trump said, before adding that “it’s possible that we’ll make a deal before that.”

The White House also said he would address the nation on Thursday “to provide an important update on Iran.”

Iran’s Response

Iranian leader Masoud Pezeshkian told the head of the European Council the country had “the necessary will to end this conflict, provided that essential conditions are metespecially the guarantees required to prevent repetition of the aggression.”

Markets React

Wall Street surged, with the Nasdaq up 3.8% and the S&P 500 adding almost 3%.

In Asia:

• Seoul: Up more than 6%

• Tokyo: Up at least 4%

• Taipei: Up at least 4%

The Strait of Hormuz

However, Trump also said US forces would not work to unblock the Strait of Hormuz, through which a fifth of global oil and gas passes, and said it was up to other countries to do so.

The Wall Street Journal cited Arab officials as saying the United Arab Emirates was preparing to help Washington open the Strait by force, which would make it the first Gulf nation to join the battle.

Latest Developments

Attacks on the Gulf:

• Kuwait’s international airport came under an Iranian drone attack that led to “a large fire” at fuel tanks

• Bahrain reported a fire at a business facility “as a result of the Iranian aggression”

• Saudi Arabia shot down several drones

• A tanker was hit in the waters off Qatar

Beirut strikes:
Three explosions rocked Beirut’s southern suburbs. Israeli strikes killed seven people and wounded dozens, according to Lebanon’s health ministry.

South Lebanon:
At least eight people were killed Tuesday in Israeli strikes, including a paramedic.

Journalist kidnapped:
An American journalist was kidnapped in Baghdad by a suspected Iranian-backed Iraqi armed group, the United States said.

The Bottom Line

Oil is up. Stocks are up. Trump says the war will end soon. Iran says it has the will.

But the Strait of Hormuz is still closed. US troops are still arriving. And the attacks continue.

The war may be winding downor just catching its breath.