Oil prices surge, Asian stocks fall as Trump vows continued Iran attacks

Thursday April 2, 2026

Oil markets jolted sharply higher on Thursday, with prices surging more than $5 after President Donald Trump said the United States would keep striking Iran, while stopping short of giving any clear deadline for how the war might end. The lack of a firm end point deepened investor concern that disruptions to energy supplies could stretch on.

Brent crude futures LCOc1 climbed $6.33, or 6.3 percent, to $107.49 a barrel in early trading, while US West Texas Intermediate crude CLc1 rose $5.28, or 5.3 percent, to $105.40 a barrel.

The rebound came after both benchmarks had slipped by more than $1 earlier in the session, before Trump delivered a televised address to the nation.

Iran’s move to close the Strait of Hormuz in response to the US-Israeli attacks has already disrupted around one-fifth of the world’s oil and liquefied natural gas (LNG) supplies, intensifying what is now the largest energy crisis the world has seen in decades.

“We are going to finish the job, and we’re going to finish it very fast. We’re getting very close,” Trump said on Wednesday. He also asserted that US forces had nearly completed their objectives in the conflict, which he said would end in two to three weeks. The remarks echoed previous comments he has made.

Asia hit hard

Asian equities were also swept lower after Trump spoke. Many Southeast Asian economies depend heavily on imported oil, leaving them particularly vulnerable to the spike in prices unleashed by the conflict in the Middle East.

Emerging market shares across Asia retreated, with the MSCI gauge of EM Asia equities falling 2.3 percent, while regional currencies edged down 0.2 percent.

South Korea’s benchmark KOSPI index dropped 4.2 percent after having risen by almost 2 percent earlier in the day.

South Korean President Lee Jae ⁠Myung on ⁠Thursday called on parliament to move quickly and approve a 26.2 trillion won ($17.3bn) supplementary budget aimed at supporting the economy amid what he described as “the worst ⁠energy security ⁠threat” caused by the Middle East crisis.

Singapore’s main market, the Singapore Exchange (SGX), opened at a two-week high but later reversed course and fell 0.8 percent. Malaysia’s benchmark index lost 1 percent. Markets in Indonesia and Taiwan also weakened, declining by about 1 percent and 1.4 percent respectively.

Shares in China and Hong Kong also moved lower, with the Shanghai Composite Index SSEC down 0.53 percent by midday and the blue-chip CSI300 Index CSI300 off 0.74 percent.

In Hong Kong, the Hang Seng Index HSI slipped 1.1 percent, while shares in technology firms HSTECH fell 2.2 percent.

“Prior to Trump’s speech, Iran took the unusual step of reaching out to the US directly by sending a letter to Americans saying that Iran had no enmity with the US and that it was acting in self-defence,” said Al Jazeera’s Patrick Fok, reporting from Singapore.

“That provided Washington with an off-ramp which had helped lift Wall Street stocks overnight.”

But now a lot of uncertainty is returning to markets, Fok added.

“I think it’s important to note also that from what we’ve seen over the last couple of days – particularly with that record rise that you saw in Asian markets for the year yesterday – that if there is any resolution to the price, we are going to see markets bounce back very quickly indeed,” said Fok.