American Marconi Wireless News - Oil plunges, stocks rise as Trump says Iran war over 'very soon'

International oil benchmark, Brent North Sea crude, plunged 9.6 percent to $89.44 a barrel, a day after it neared $120.

The drop in oil prices gathered pace as member states of the International Energy Agency met for crisis talks to assess "the current security of supply" and the potential release of emergency stocks.

"Renewed optimism on the back of falling oil prices helped global stock indices recover, most strongly in Asia and Europe," said analyst Axel Rudolph at IG trading platform.

The Paris and London stock markets gained over 1.5 percent after European gas prices sank 15 percent, helping ease concerns over a renewed surge of global inflation.

Frankfurt ended the day up 2.4 percent.

Asian stock markets rallied, with Seoul up more than five percent and Tokyo ending with a gain of 2.9 percent.

There were advances in Hong Kong, Shanghai, Sydney, Singapore, Bangkok, Mumbai, Taipei, Manila and Jakarta.

Wall Street stocks continued to push higher on Tuesday.

"This is still a fluid market, and if the headlines deteriorate, or the war escalates, then we could see prices reverse once again," said Kathleen Brooks, research director at trading group XTB.

As the crisis in the crude-rich Middle East blasted through its second week, Trump said the campaign was far ahead of his initial timeline of around a month.

"It's going to be ended soon, and if it starts up again they'll be hit even harder," he told a news conference in Florida on Monday.

Iran responded by vowing to block Gulf oil exports and asserting that it, not the US, would "determine the end of the war".

Still, Trump's remarks helped reverse the previous day's spike in oil prices, which had surged since Iranian attacks on shipping all but closed the strategic Strait of Hormuz. Iran's targeting of the waterway was in response to an US-Israeli strikes that killed its supreme leader.

The oil price surge also followed strikes on an oil depot in Iran and after attacks on oil infrastructure in Saudi Arabia and Bahrain.

Investors' attention remained focused on the Strait of Hormuz, through which nearly 20 percent of the world's crude oil usually transits from the Gulf to world markets.

About 10 vessels in or near the strait have come under attack since Iran all but blocked the strait in retaliation for the US-Israeli strikes, according to shipping experts.

"While things have calmed down, ultimately, the biggest factor for markets will be whether energy supplies from the region resume normally," said Forex.com analyst Fawad Razaqzada.

"Until traders see confirmation that shipping through the Strait of Hormuz has stabilised and production is returning, oil prices are unlikely to retreat dramatically from current levels," he added.

- Key figures at around 1630 GMT -

Brent North Sea Crude: DOWN 9.6 percent at $89.44 per barrel

West Texas Intermediate: DOWN 10.1 percent at $85.19 per barrel

New York - Dow: UP 0.5 percent at 47,958.52 points

New York - S&P 500: UP 0.4 percent at 6,820.58

New York - Nasdaq Composite: UP 0.6 percent at 22,837.70

London - FTSE 100: UP 1.6 percent at 10,412.24 (close)

Paris - CAC 40: UP 1.8 percent at 8,057.36 (close)

Frankfurt - DAX: UP 2.4 percent at 23,968.63 (close)

Seoul - Kospi: UP 5.4 percent at 5,532.59 (close)

Tokyo - Nikkei 225: UP 2.9 percent at 54,248.39 (close)

Hong Kong - Hang Seng Index: UP 2.2 percent at 25,959.90 (close)

Shanghai - Composite: UP 0.7 percent at 4,123.14 (close)

Euro/dollar: UP at $1.1646 from $1.1614 on Monday

Pound/dollar: UP at $1.3458 from $1.3427

Dollar/yen: DOWN at 157.65 yen from 157.85 yen

Euro/pound: UP at 86.55 pence from 86.49 pence

burs-rl/rmb

M.Thompson--AMWN