Europe open: Shares surge as Trump hints at US withdrawal from Iran war

(Sharecast News) - European share markets surged and oil fell at the open on Wednesday after US President Donald Trump said he could end his war of choice on Iran within the next three weeks with or without a ceasefire deal. The pan-regional Stoxx 600 index was up 2.3% to 596.54 at 0833 BST with all major bourses following suit. Germany's DAX was up 2.84%, the UK's FTSE 1.76%, France's CAC 40 2.24% and Italy's MIB 2.76%.

Trump on Tuesday said US forces would end operations in Iran "very soon" and hinted at a timeline of two to three weeks. He also said the US would not take responsibility for keeping the Strait of Hormuz open, instead throwing the task to "whoever's using the strait".

Despite the talk of a US withdrawal, Israel continued to attack targets in Iran, rebel Houthis in Yemen fired missiles at southern Israel and thousands of additional American troops were heading to the Middle East.

The aircraft carrier USS George HW Bush was scheduled to travel to the region along with three destroyers, two US officials said.

"A coiled spring was unleashed as investors saw clear light at the end of the tunnel for an end to the hostilities in the Middle East," said Interactive Investor head of markets Richard Hunter.

"With a mountain of cash reportedly on the sidelines, investors had been waiting for a trigger to put the money to work. This was provided by the US President confirming a timeline of two to three weeks before the US retreats, leaving others to restore trading through the Strait of Hormuz. At the same time, the Iranian President was said to be open to ending the war, subject to certain guarantees."

Benchmark crude oil fell 4% to just below $100 in early trade, while West Texas Intermediate was 4.31% lower to $97. Both are still well above levels before the US and Israel started hostilities at the end of February.

In equity news, shares in Berkeley tanked after the property company said it was pause making any new land acquisitions due to the challenging market backdrop and geopolitical volatility.

Airline shares spiked on the potential for a ceasefire, with Lufthansa and British Airways owner IAG both up.

Reporting by Frank Prenesti for Sharecast.com