Global oil prices fell below $100 a barrel on Wednesday, while Asian stock markets surged, after US President Donald Trump indicated that the United States would withdraw from Iran within “two to three weeks,” regardless of whether a deal is reached with Tehran.
The announcement boosted investor confidence across Asia, with Japan’s Nikkei 225 climbing 4.9% and South Korea’s Kospi rising sharply by 8.6% in afternoon trading.
Meanwhile, the price of Brent crude oil for June delivery dropped by about 5% to approximately $98.65 per barrel. The decline follows a dramatic surge in March, when oil prices soared by a record 64% amid fears of supply disruptions triggered by tensions in the Middle East.
The earlier spike was driven in part by Iran’s threats to target vessels passing through the Strait of Hormuz, a crucial artery for global oil shipments. Concerns over a potential blockade had raised fears of a wider energy supply shock, echoing market disruptions seen during the 1990 Gulf crisis.
Speaking from the Oval Office, Trump said Iran was “begging to make a deal,” but emphasised that any agreement would not affect the US withdrawal timeline. “Whether it happens or not is irrelevant,” he stated.
Iranian President Masoud Pezeshkian responded by saying Tehran has the “necessary will” to end the conflict but is seeking guarantees to prevent future aggression.
Despite the market rally, tensions in the Middle East remain high. Airstrikes were reported in Beirut on Tuesday, with Israel saying it targeted senior Hezbollah figures. Analysts note that the recent volatility in oil prices has been fuelled by expectations that the conflict could persist into late April, alongside increased demand from refiners trying to offset shortages of jet fuel and diesel.
Countries such as Japan and South Korea, which rely heavily on Middle Eastern energy supplies, have been particularly affected by the fluctuations. Their financial markets have experienced sharp swings in recent weeks as investors react to developments in the ongoing conflict.
Trump is expected to address the public on Wednesday evening about the war, as global markets continue to monitor the situation closely for signs of further escalation or de-escalation.
Melissa Enoch
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