Morning brief: Bitcoin gain; Asian stocks rally on Trump remarks

Global financial markets opened Tuesday with sharp swings across energy, equities, and cryptocurrencies as investors reacted to signals that the conflict involving Iran could be nearing an end.

Oil prices plunged after US President Donald Trump suggested the war was nearly complete, easing fears of prolonged disruptions to energy supplies.

Asian stock markets rallied as risk sentiment improved, while Bitcoin recovered from weekend losses amid stabilizing energy markets and continued institutional demand.

Trump signals Iran conflict may be nearing an end

Markets were initially driven by remarks from US President Donald Trump indicating that the conflict involving Iran could soon wind down.

In a phone interview with CBS News, Trump suggested that the military campaign had largely achieved its objectives.

"I think the war is very complete, pretty much," the president said, speaking from his Doral, Florida, golf club. "[Iran has] no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones."

The US military said it struck more than 3,000 Iranian targets in the first week of operations.

"If you look, they have nothing left. There's nothing left in a military sense," Mr. Trump said.

Iran also announced that Ayatollah Mojtaba Khamenei would replace his father as supreme leader, a development that added further political uncertainty to the situation.

Trump said he had no message for the new leader.

"I have no message for him. None, whatsoever," the president said.

The president also warned Iran about interfering with shipping through the Strait of Hormuz, a critical route for global energy supplies.

"They've shot everything they have to shoot, and they better not try anything cute or it's going to be the end of that country. … If they do anything bad, that would be the end of Iran and you'd never hear the name again."

Trump also said the war was progressing faster than expected.

"We're very far ahead of schedule," he told CBS News.

Oil prices tumble after historic surge on war fears

Energy markets reacted sharply to Trump’s comments.

Oil had surged dramatically earlier, with Brent crude jumping about 28% to nearly $120 per barrel, marking a near four-year high as supply disruptions intensified.

However, prices reversed course quickly after Trump’s remarks suggested the conflict might end sooner than expected.

West Texas Intermediate crude was last trading around $88.46 per barrel, down 6.5%, while Brent crude fell 6.1% to about $92.66 per barrel.

Earlier in the session Brent briefly dropped to $88.10, while WTI touched $84.45.

The earlier rally had been triggered by the shutdown of oil production across the Persian Gulf and the effective closure of the Strait of Hormuz, through which roughly one-fifth of global oil supply typically flows.

Analysts said markets will ultimately need to see supply flows resume before oil prices stabilize further.

Asian equities rally as market sentiment improves

Equity markets across Asia rallied as oil prices dropped and risk appetite returned.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.78%.

Japan’s Nikkei 225 jumped 2.6%, while South Korea’s Kospi surged 4.6%.

The sharp gains even triggered a temporary sidecar trading halt in Korea after futures rose more than 5%.

Market analysts said the change in tone from Washington helped calm investor nerves after Monday’s volatility.

Bitcoin rebounds above $70,000 as crypto stabilizes

Cryptocurrency markets also recovered as oil volatility eased.

Bitcoin climbed back above $70,000 during Asian trading hours after briefly dropping to around $65,000 over the weekend.

The cryptocurrency had initially fallen alongside other risk assets during the energy shock but rebounded as market sentiment improved.

Institutional investment flows continued to support the asset class.

US-listed spot Bitcoin ETFs recorded about $568 million in net inflows last week, following $787 million the week before, pushing cumulative inflows above $55 billion.

Corporate demand also remained strong.

Strategy, the largest corporate holder of Bitcoin, purchased 17,994 Bitcoins for $1.28 billion between March 2 and March 8.

Company chairman Michael Saylor signaled the update in a social media post.

“The Second Century Begins,” Saylor wrote.