Oil falls below $100 and shares jump on hopes Iran war will end soon

Oil fell below $100 a barrel and sharesjumped in Asia on Wednesday after President Donald Trump said the US will leave Iran in “two to three weeks” regardless of whether a deal is struck with Tehran.

Japan’s Nikkei 225 index gained by 4.9%, while the Kospi in South Korea rose 8.6% in afternoon trading.

The price of Brent crude oil for delivery in June was trading around 5% lower at about $98.65 (£74.27) a barrel.

It comes after the price of Brent to be delivered in May rose by a record 64% in March as Iran threatened to attack vessels using the Strait of Hormuz, effectively shutting the key shipping route.

Speaking from the Oval Office on Tuesday, Trump said Iran is “begging to make a deal” but whether it happens or not is “irrelevant” to America’s timetable.

Earlier, Iranian President Masoud Pezeshkian said his country has the “necessary will” to put an end to the war but demanded certain guarantees to prevent the recurrence of any future aggression.

The global benchmark for oil is a contract to buy a barrel of Brent crude one month in the future. When this price rises, it typically pushes up fuel prices too, because oil is a key component.

The oil price surge in March was the biggest monthly gain since 1990 when Iraq’s invasion of Kuwait took both countries’ oil off the market, resulting in an energy supply shock, said Nicolas Daher from the Economist Intelligence Unit.