Portugal Colonial - Oil plunges, stocks steady as Trump says Iran war over 'very soon'

International oil benchmark, Brent North Sea crude, plunged nearly seven percent to $92 a barrel, a day after nearing $120.

"This downward swing in oil helped US stocks stage an impressive comeback on Monday to trade in positive territory -- a trend which continued in Asia and is now being repeated in Europe," noted AJ Bell investment director Russ Mould.

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

Frankfurt gained over two 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 was unable to continue the rally when trading opened Tuesday, with the Dow and S&P 500 opening flat while the Nasdaq edged higher.

"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 entered 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 they, 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 closed the strategic Strait of Hormuz in response to the US-Israeli strikes that killed its supreme leader.

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

The US president also said he would temporarily waive some oil-related sanctions, after acknowledging talks with Russian counterpart Vladimir Putin.

Investors' attention 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.

President Emmanuel Macron has said France and its allies are working on a "purely defensive" mission to reopen the strait, aiming to escort ships "after the end of the hottest phase of the conflict".

- Key figures at around 1330 GMT -

Brent North Sea Crude: DOWN 6.8 percent at $92.20 per barrel

West Texas Intermediate: DOWN 6.2 percent at $88.94 per barrel

New York - Dow: FLAT at 47,722.22 points

New York - S&P 500: FLAT at 6,795.17

New York - Nasdaq Composite: UP 0.2 percent at 22,735.94

London - FTSE 100: UP 1.5 percent at 10,406.56

Paris - CAC 40: UP 1.6 percent at 8,045.14

Frankfurt - DAX: UP 2.4 percent at 23,965.05

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 $1.1647 from $1.1614 on Monday

Pound/dollar: UP at $1.3463 from $1.3427

Dollar/yen: DOWN at 157.70 yen from 157.85 yen

Euro/pound: UNCHANGED at 86.49 pence

burs-rl/cw

A.Seabra--PC