Hong Kong equities rebounded after a sharp bout of volatility as global oil prices retreated following signals from United States President Donald Trump that the war involving Iran could be approaching an end.

The Hang Seng Index and other Asian markets moved higher after crude oil prices dropped, easing fears that prolonged disruptions to global energy supplies would drive inflation and undermine economic growth.

Investors interpreted Trump’s remarks about the potential conclusion of hostilities as a sign that the geopolitical shock gripping financial markets might soon begin to fade.

Energy prices had surged in recent weeks amid the outbreak of conflict involving Iran, the United States and Israel, with traders concerned that fighting near the Strait of Hormuz could threaten a vital route for global oil shipments.

Roughly a fifth of the world’s oil supply normally passes through the narrow waterway, making it one of the most strategically important energy corridors on the planet.

The prospect of a rapid de-escalation helped calm markets, pushing crude prices lower and encouraging investors to return to risk assets such as equities.

Hong Kong stocks, which had been pressured by the earlier spike in oil and broader regional uncertainty, benefited from the shift in sentiment.

Market participants said the easing in oil prices reduced immediate concerns about rising costs for businesses and consumers.

Lower energy prices can help limit inflationary pressure, supporting corporate profitability and economic growth expectations across Asia.

Financial markets have experienced significant turbulence since the conflict erupted, with oil prices surging and global stock markets swinging sharply as traders assessed the potential economic consequences.

Analysts warned that prolonged disruptions to oil flows could lift inflation worldwide and slow economic activity.

President Trump has repeatedly emphasized that his administration is working to bring the conflict to a swift conclusion while safeguarding global energy security and international trade routes.

His comments suggesting that the war could end soon were seen by investors as a sign that diplomatic and strategic efforts may be gaining traction.

The market rebound in Hong Kong reflected broader improvements in global risk appetite, as traders cautiously welcomed indications that tensions in the Middle East might stabilize in the near term.

Despite the recovery, analysts noted that markets remain sensitive to developments in the region.

Any renewed disruption to energy supply routes or escalation of hostilities could quickly reverse gains and reignite volatility across global financial markets.