Trump Signals Iran Exit: Asian Markets Post Best Day in Months

The war in the Middle East may be entering its final chapter. U.S. President Donald Trump said Tuesday that American forces could leave Iran "in two or three weeks," adding: "There is no reason for us to do this." His comments triggered the sharpest rally across Asian markets since May.

The reaction

South Korea's KOSPI surged 4.88% within the first 15 minutes of trading, triggering a rare sidecar halt on program-driven buy orders. The Korean won jumped 21.6 points to 1,508.5 per dollar, snapping back from its lowest level since the 2009 financial crisis. Japan's Nikkei 225 gained 3.51%. Australia's ASX 200 rose 1.76%. Across Asia, nine stocks rose for every one that fell.

Overnight in the U.S., the Dow rallied 2.49%, the S&P 500 gained 2.91%, and the Nasdaq jumped 3.83%.

What Trump actually said

Trump stopped short of requiring a formal deal. "They don't have to make a deal with me," he said. But his condition was clear: Iran must be unable to develop nuclear weapons. He called the operation "a little detour" and described Iran's current leadership as "much more rational" than previous governments.

Separately, Iranian President Masoud Pezeshkian told European Council President Antonio Costa that Tehran has the "necessary will" to end the war, provided guarantees against reignition.

What's at stake

The conflict, which began in late February with U.S.-Israeli strikes, has pushed oil above $100 per barrel and disrupted shipping through the Strait of Hormuz. Trump suggested the U.S. would not take responsibility for keeping the strait open, telling reporters that if "France or some other country wants to get oil," they should handle it themselves.

For Asia, the stakes are enormous. The region's largest economies depend on Middle Eastern energy imports, and the war has already hammered currencies, stoked inflation fears, and rattled supply chains from Seoul to Singapore.

Sources: CNBC, Yonhap, Straits Times, Korea Herald, Bloomberg