Asian Stock Markets Strengthen After Trump Signals Withdrawal from Iran
JAKARTA - Asian stock markets surged on Wednesday morning after US President Donald Trump stated that the US would leave Iran within the next two to three weeks, regardless of whether an agreement has been reached with Tehran or not.
Japan’s Nikkei 225 index rose nearly 4% in early trading. Meanwhile, South Korea’s Kospi climbed more than 6%. However, both indices are still trading lower than before the Iran war began on 28 February 2026.
Brent crude oil for June delivery traded 1.2% higher at $105.36 per barrel US.
This follows Brent for May delivery, which rose 64% in March and recorded the largest monthly increase on record. The rise occurred because Iran threatened to attack ships using the Strait of Hormuz, effectively closing that main shipping route.
Yesterday, Trump said Iran is begging to make a deal.
As a note, the global benchmark for oil is the contract to buy one barrel of Brent crude one month ahead. When this price rises, fuel prices usually follow, as oil is a key component.
Economist Intelligence Unit’s Nicolas Daher said the oil price spike in March was the largest monthly increase since 1990, when Iraq invaded Kuwait. At that time, the invasion halted oil supplies from both countries and caused an energy supply shock.
“This also triggered fears of broader oil supply disruptions from other Gulf countries, leading to a surge in energy costs,” he said, quoted from BBC, Wednesday (1/4/2026).
He added that the latest price surge was driven by expectations that the conflict would continue at least until the end of April.
Fighting continues in the Middle East. Lebanon’s capital, Beirut, was hit by airstrikes on Tuesday, with the Israeli military saying the strikes targeted senior Hezbollah figures.
Trump is expected to deliver a speech to the public on Wednesday evening about the war.
Asian countries like Japan and South Korea have been hard-hit by this conflict because they are highly dependent on energy from the Middle East.
Meanwhile, financial markets in both countries have fluctuated sharply in recent weeks as investors react to war developments.