Stock markets across Europe and Asia rose strongly on Wednesday as investors reacted to signs that the conflict involving Iran could ease in the coming weeks. Optimism followed remarks by Donald Trump, who said the United States may halt military operations within two to three weeks, regardless of whether a formal agreement is reached.
The improved sentiment lifted major European indices. The Euro Stoxx 50 gained more than 1 percent, while the broader Stoxx 600 climbed about 2.5 percent. In United Kingdom, the FTSE 100 rose around 0.8 percent, while Germany’s DAX and France’s CAC 40 also moved higher. Italy’s FTSE MIB recorded the strongest gains among major European markets, rising roughly 1.7 percent.
The rally followed comments by Trump during a press briefing at the White House on Tuesday, where he said the US would “probably” end attacks on Iran soon. He also indicated that Washington would not be involved in what happens next in the Strait of Hormuz, a key route for global energy shipments.
Oil markets reacted quickly to the prospect of de-escalation, with Brent crude and US West Texas Intermediate futures falling about 4 percent, dropping below $100 per barrel. Lower energy prices provided additional support to equities, which have been under pressure due to rising fuel costs and supply concerns.
Asian markets also posted strong gains. South Korea’s Kospi index surged more than 8 percent, recovering losses seen earlier in the week, while Japan’s Nikkei 225 rose over 2 percent. A survey from Japan’s central bank released on Wednesday showed improving business sentiment among major manufacturers, despite ongoing geopolitical risks.
Elsewhere in the region, Hong Kong’s Hang Seng index climbed more than 2 percent, and China’s Shanghai Composite rose around 1.5 percent. India’s Sensex advanced roughly 2 percent, while Australia’s ASX 200 and Taiwan’s Taiex also recorded gains.
Analysts cautioned that while markets have responded positively, uncertainty remains. “De-escalation hopes have given markets a lift, but the effects of the war are likely to persist even if it ends soon,” said Thomas Mathews, head of markets for Asia Pacific at Capital Economics.
US stock futures also moved higher, building on strong gains from the previous session when Wall Street recorded its best day in nearly a year. The S&P 500 rose 2.9 percent, while the Dow Jones Industrial Average gained 2.5 percent and the Nasdaq jumped 3.8 percent.
Investors are now closely watching for further signals from Washington, including an expected address by Trump, as markets weigh whether the current rally can be sustained if geopolitical tensions ease further.
