Thanks for joining me. Stocks fell heavily and oil prices surged after Donald Trump said other countries would have to “take the lead” in reopening the Strait of Hormuz.
Asian markets plunged and European shares were expected to do the same at the start of trading after the US president’s address to the nation.
He told the American people that countries struggling to get fuel should “just take” the Strait of Hormuz shipping route and “use it for yourselves”.
He also urged foreign governments to buy oil from the US until they can reopen the waterway, where a fifth of the world’s oil and gas exports pass.
“The countries of the world that do receive oil through the Hormuz Strait must take care of that passage,” he said.
“They must cherish it. They must grab it and cherish it, they can do it easily.”
Shares had risen sharply and oil had fallen on Tuesday and Wednesday over hopes that the US and Iran were close to ending the Middle East conflict, which has left the shipping route effectively closed.
“Those moves are now revealed as an April Fool’s rally,” said Rabobank analyst Benjamin Picton.
On Wednesday, the main stock markets in Japan and South Korea plunged by more than 2pc and 4pc, respectively, as oil prices leapt by 6pc to more than $107 a barrel.
Mr Picton added: “The market optimism of the last 24 hours was always likely to be misplaced.
“The subtext of Trump’s remarks is that Nato and the Gulf states must get involved in the war to re-open the Strait, or else suffer the consequences of US withdrawal for the world economy.” Here is what you need to know.
5 things to start your day
1) The era of cheap oil is over | There is no quick fix to the global energy crisis even if Trump ends his war in Iran
2) Elon Musk launches $1.75trn SpaceX stock market listing | Rocket maker preparing for biggest debut in history despite ongoing instability over Iran war
3) AA urges drivers to slow down to save fuel | Advice means motorists should drive at a top speed of 63mph on motorways this Easter weekend
4) Ryanair chief warns of summer flight cancellations | Michael O’Leary says UK is more exposed to jet fuel shortages than rest of Europe
5) Richard Tice sues Labour donor Dale Vince for libel | Reform deputy leader’s defamation claim is latest development in long-running legal row
What happened overnight
Oil rose more than 6pc and Asian stocks fell after Donald Trump said the US will continue to hit Iran “extremely hard”.
The US president also said in his Wednesday night speech that the US will “finish the job” in Iran soon as “core strategic objectives are nearing completion” and military operations could wrap up soon.
However, stocks fell over concerns that he is preparing to end the war without a deal on reopening the Strait of Hormuz shipping route, which carries a fifth of the world’s oil and gas exports.
Tokyo’s Nikkei 225 was down 2.6pc to 52,333.79, while South Korea’s Kospi lost 5.2pc to 5,191.62.
Hong Kong’s Hang Seng fell 1.4pc to 24,932.81, the Shanghai Composite index was down 1.1pc to 3,903.98.
Australia’s S&P/ASX 200 dropped 1.1pc, while Taiwan’s Taiex was trading 1.8pc lower.
Oil prices were sharply higher, with Brent crude, the international standard, up 6.6pc to nearly $108 per barrel.
Gold and silver prices fell. Gold’s price was down 2pc to $4,718.70 per ounce, and silver lost 4.9pc to $72.39 an ounce.
Renewed optimism on Wednesday for a possible end to the Iran war pushed world stocks higher, after Trump said late Tuesday the US military could end its offensive in two to three weeks.
On Wednesday, the S&P 500 added 0.7pc to 6,575.32. The Dow Jones Industrial Average rose 0.5pc to 46,565.74, and the Nasdaq composite climbed 1.2pc to 21,840.95.
