Oil Retreats, Asia Equities Rebound After Trump Says Iran War Could End Soon

By Ronnie Harui

Oil fell and Asian equities rebounded Tuesday morning, making a sharp U-turn from the prior day's moves after President Trump said the Iran war could soon be over.

Speaking at a press conference on Monday, Trump said the military campaign was progressing faster than expected, and that the U.S. was focused on keeping energy and oil flowing to the world.

"We're way ahead of schedule," the president said. Asked by reporters whether the conflict will be over this week, Trump said "No, but soon, I think so. Very soon."

Front-month West Texas Intermediate crude oil futures fell 9.6% to $85.68 a barrel early on Tuesday, and front-month Brent crude oil futures dropped 9.6% to $89.50 a barrel, according to ICE data.

Japan's Nikkei Stock Average rose 3.1%, South Korea's Kospi Index climbed 5.9%, and Australia's S&P/ASX 200 Index added 1.3%.

Risk assets have gotten a boost, said Sally Auld, group chief economist at NAB, in a commentary. She pointed to Trump's remarks on the Middle East conflict and that the U.S. was running well ahead of its previously outlined 4-5 week timeline.

Write to Ronnie Harui at [e-mail]

(END) Dow Jones Newswires

03-09-26 2115ET