Asian shares jumped sharply on Wednesday, following Wall Street's best day since last spring amid renewed hopes that the war in Iran could soon draw to a close. South Korea’s Kospi surged 5.2 per cent to 5,312.45 in early trading, while Tokyo’s Nikkei 225 rose 3.5 per cent to 52,840.67.
The rally came after US President Donald Trump said on Tuesday that the United States would be done attacking Iran in two to three weeks and that the US “will not have anything to do with” what happens next in the Strait of Hormuz. The White House confirmed Trump would deliver a public address on Wednesday evening concerning the Iran war.
Trump’s remarks followed his criticism of US allies, whom he told to “go get your own oil” and blamed for refusing to be more involved in the war effort. Significant disruption to maritime traffic through the Strait of Hormuz, where roughly a fifth of the world’s oil typically passes, has sent energy prices soaring and is fuelling global inflation.
Oil prices steadied after an earlier dip, with the price of Brent crude, the international standard, rising 0.6 per cent to $104.62 a barrel early Wednesday. Benchmark US crude rose 0.9 per cent to $102.30 a barrel.
On Tuesday, the S&P 500 jumped 2.9 per cent for its largest gain since May, closing at 6,528.52. The Dow Jones Industrial Average surged 2.5 per cent to 46,341.51, and the Nasdaq composite leapt 3.8 per cent to 21,590.63.
