Trump's Iran Remarks Send Stocks Soaring, Oil Plummets 15%

Global markets rallied on Wednesday after former U.S. President Donald Trump said the conflict in Iran was close to ending, prompting a sharp shift in risk sentiment across equities, energy, and rates.

Brent crude oil fell more than 15% to $99.78 a barrel, its lowest level in a week. The move in oil coincided with broad gains in stock markets in Asia and Europe, where investors appeared to respond to the prospect of reduced near-term disruption risks tied to Gulf energy flows.

In Asia, where many economies are highly exposed to imported oil and gas, major indexes posted strong advances. Japan’s Nikkei rose 5%, South Korea’s Kospi jumped 8%, Hong Kong’s Hang Seng gained 2%, and China’s CSI 300 added 1.7%.

European equities also moved higher. The UK’s FTSE 100 climbed 1.8%, while the Europe Stoxx 600 rose 2.2%, extending the relief rally into the region’s trading session.

The catalyst was Trump’s comment that the United States was “finishing the job” in Iran within “two to three weeks.” Markets treated the remarks as a signal that the conflict could be nearing a conclusion, and the resulting shift in expectations was visible beyond equities and oil.

Interest-rate pricing in the UK adjusted as well. Money markets priced in about 41 basis points of increases to the UK bank rate by the end of 2026, down from 66 basis points previously, indicating a softer path for expected tightening than traders had been anticipating.

Not all traditional safe-haven assets moved in the same direction. Gold continued to rise, gaining 0.8% to above $4,700 an ounce, its highest level in nearly two weeks, even as equities advanced and oil retreated.

For global investors, the day’s price action underscored how quickly geopolitical headlines can reprice assets tied to energy supply and inflation expectations. The immediate market response reflected relief, but the durability of the move remains uncertain because it hinges on how events develop relative to the timeline described.