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

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

Japan's Nikkei 225 index gained almost 4% in early trading, while the Kospi in South Korea rose by more than 6%. 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 1.2% higher to $105.36 (£79.61).

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 the Gulf war in 1990 when Iraq's invasion of Kuwait took both countries' oil off the market, resulting in an energy supply shock, said Goh Jing Rong from the Singapore Management University.

The recent spike in oil prices has been driven largely by fears of disruptions to supplies following the effective closure of the Strait of Hormuz, Goh said.

Prices were also pushed higher by concerns over higher insurance for oil tankers and the vulnerability of other waterways in the region, he added.

In recent days, the entry into the conflict in of the Iran-backed Houthi militant group in Yemen raised fears that they could potentially disrupt shipping through the Red Sea off the coast of the country.

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.

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