Oil jumps and shares fall after Trump Iran address

Oil prices rose and shares fell after US President Donald Trump delivered a primetime televised speech about the Iran war on Wednesday.

During the address from the White House, Trump said his core objectives are nearing completion.

He also called on countries that need oil from the Middle East to take the lead to keep the key Strait of Hormuz shipping route open, arguing the US doesnt need energy from the region.

The strait is crucial to the global economy as around 20% of the worlds energy usually passes through the narrow shipping lane. It has been effectively shut since the conflict started as Iran retaliated to US and Israeli strikes by threatening to attack ships using the waterway.

The price of benchmark Brent crude was trading at about $100 (£75.50) a barrel before the president started speaking.

After the address Brent jumped by 4.8% to $106.02, while West Texas Intermediate oil rose 4% to about $104.

The gains are a clear market reality check following the earlier optimism for an imminent ceasefire said Alberto Bellorin from InterCapital Energy.

Trumps speech lacked a concrete timeline for the reopening of the Strait of Hormuz, while a return to normal now looks months away rather than weeks, he added.

In urging other nations to step in, Trump has removed hopes that disruptions to global energy supplies will be resolved swiftly, Bellorin said.

Trump has signalled that the war is likely to continue, prompting investors to expect that oil supplies will remain tight, said Tina Soliman-Hunter from Macquarie University.

Major stock indexes in Asia fell after the address, reversing earlier gains.

The Nikkei 225 in Japan was down by 1.9%, South Koreas Kospi fell by 3.5% and the Hang Seng in Hong Kong was 1% lower.

The regions stock markets have been volatile since the Iran war started at the end of February.

Asia is particularly vulnerable to the impact of the conflict as it is heavily reliant on the Middle East for its energy supplies.

Meanwhile, US stock futures were also down - pointing to a lower open for Wall Street on Thursday morning.

Dow Jones and S&P 500 futures were around 1% lower, while Nasdaq futures were down by about 1.4%.

Stock market futures are contracts that allow investors to buy or sell a stock index at a set price on a future date.

They function as a bet on which direction investors expect the market to head, with prices reflecting market sentiment.

Trump leaves key questions unanswered as he seeks to calm nerves over Iran war