Oil prices fell sharply on Wednesday. With Brent crude reaching a low of $98.35 a barrel, down more than 15% from the previous day, according to The Guardian; this marked the lowest level for the international benchmark in a week before it recovered slightly to close at $102.

Global Markets Rally on Trump’s Remarks

Stock markets across Asia experienced a significant rally, with Japan’s Nikkei surging 5% and South Korea’s Kospi rising by 8%. Hong Kong’s Hang Seng climbed 2%, and China’s CSI 300 index increased by 1.7%, according to The Guardian.

European markets followed suit, with the UK’s FTSE 100 closing 1.8% higher, its largest one-day gain in nearly a year. The Europe Stoxx 600 index also rose by 2.4%, reflecting the global optimism triggered by Trump’s comments.

Trump’s Comments Signal End to Iran Conflict

President Donald Trump stated on Tuesday that the war in Iran would be concluded in “two weeks or maybe a few days longer,” according to The Guardian. He added, “Now we’re finishing the job. I think in two weeks or maybe a few days longer, we’ll do the job. We want to knock out everything they’ve got.”

The remarks led to a relief rally in the US stock markets on Tuesday, with the S&P 500 rising by 2.9% at the start of trading and closing 0.72% higher. The president is set to address the nation at 9pm ET on Wednesday (2am BST on Thursday), according to The Guardian.

Emma Wall, the chief investment strategist at Hargreaves Lansdown, noted that markets are “choosing to believe the optimism from the White House.” She stated, “Trump’s comments suggest that the US will call victory soon and remove their presence from the region, despite no deal being reached with Iran.”

Wall added that while the comments may provide an immediate boost to stocks, energy disruption would continue for some months, potentially impacting both inflation and economic growth. The market response has also led to a reassessment of interest rate expectations, with investors reducing bets on UK rate hikes.

Gold Prices Rise Amid Uncertainty

The price of gold, which had jumped by 3.5% on Tuesday, rose another 2.5% on Wednesday to reach its highest level in almost two weeks. Gold reached more than $4,786 an ounce, reflecting investor demand amid geopolitical uncertainty.

Money markets now anticipate about 41 basis points of increases to the UK bank rate by the end of 2026, down from 66 basis points expected earlier in the week. This suggests a shift in expectations regarding the pace of interest rate hikes in the coming months.

Trump’s comments have created a wave of optimism, but the long-term effects of the conflict remain uncertain. As markets rally and oil prices fall, investors are closely watching the situation in the Middle East and the potential impact on global economies.