Equities rallied and oil tumbled on Wednesday after US President Donald Trump said the Middle East war would be over in up to three weeks, and his Iranian counterpart said Tehran had "the necessary will" to bring it to an end.
The remarks came as the economic impact of the conflict worsens, with average US gasoline prices topping $4 a gallon for the first time in four years this week, European inflation spiking and governments unveiling a range of support measures.
Trump told reporters the United States would be leaving Iran "very soon", perhaps within "two weeks, maybe three".
"We want to knock out every single thing they have," Trump said, before adding that "it's possible that we'll make a deal before that."
The White House said he would address the nation at 0100 GMT on Thursday "to provide an important update on Iran".
Earlier, Iranian leader Masoud Pezeshkian told the head of the European Council the country had "the necessary will to end this conflict, provided that essential conditions are met — especially the guarantees required to prevent repetition of the aggression".
Markets on the rise
Wall Street surged, with the Nasdaq up 3.8 percent and the S&P 500 adding almost three percent.
In Asia, Seoul soared more than eight percent, Tokyo more than five percent and Taipei more than four percent.
Hong Kong, Shanghai, Sydney, Singapore, Mumbai, Bangkok, Manila and Jakarta were also sharply higher.
London, Paris and Frankfurt opened sharply higher.
Oil falls, gold rallies
Oil prices tumbled, with Brent shedding more than five percent — back below $100 for the first time since last week — and West Texas Intermediate off more than four percent.
Traders brushed off Prime Minister Benjamin Netanyahu's comments that Israel would press ahead with its campaign.
Trump said US forces would not work to unblock the Strait of Hormuz.
In a Truth Social post, Trump lashed out at NATO allies: "The U.S.A. won't be there to help you anymore, just like you weren't there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!"
Trump has zigzagged on whether Washington plans to escalate the conflict or end it through negotiations.
Traders remain wary as US troops continue to arrive in the region.
Gold rallied as the easing of oil prices boosted hope that a feared spike in inflation that could force central banks to lift interest rates.
In company news, shares in Chinese artificial intelligence startup Zhipu soared more than 32 percent after it said revenue from its cloud business almost tripled last year.
