Oil surges, stocks mixed as Trump dashes hopes of quick end of war

Oil prices shot higher, lifting both major benchmarks to about $110 a barrel by the end of the day.

"Trump's much-anticipated address delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran," said Deutsche Bank managing director Jim Reid. "There was no signal of the US seeking an imminent off-ramp out of the war."

US stocks began the session sharply lower, but later regained their footing, with two of the three major indices ending narrowly positive.

“It's as if the equity market is a bigger believer that we're closer to the off-ramp than the oil market," said Art Hogan of B. Riley Wealth Management.

After being down more than one percent, European markets closed mixed, with London higher and Paris and Frankfurt slightly lower.

Signs of de-escalation had buoyed markets in recent sessions, but Trump's speech dashed those hopes.

As time passes, markets are treating Trump's statements with greater skepticism, said Dave Grecsek, managing director at Aspiriant Wealth Management.

"Initially there was a lot more weight attached to his comments, whether this was related to tariffs or what happened in Venezuela or in Iran," he said. 

But "at some point, the markets are going to start to question the veracity of some of his statements," he added.

London finished 0.6 percent higher, boosted by oil companies BP and Shell rising almost three percent. 

Paris dropped about half a percent, even as oil giant TotalEnergies was up almost three percent on reports it made a $1 billion profit in March trading petroleum products.

Most markets in Europe and the United States are closed Friday for Good Friday.

Earlier in the day, Tokyo closed down more than two percent, and Hong Kong and Shanghai also fell. 

World Bank Managing Director Paschal Donohoe said he was fearful about the global economic impact of the crisis.

"We are extremely concerned regarding the effect that this will have on inflation, on jobs and on food security," he told AFP as the World Bank partners with the International Monetary Fund and International Energy Agency to coordinate aid responses.

- Key figures at around 2015 GMT -

Brent North Sea Crude: UP 7.8 percent at $109.03 a barrel

West Texas Intermediate: UP 11.4 percent at $111.54 a barrel

New York - Dow: DOWN 0.1 percent at 46,504.67 (close)  

New York - S&P 500: UP 0.1 percent at 6,582.69 (close) 

New York - Nasdaq Composite: UP 0,2 percent at 21,879.18 (close)

London - FTSE 100: UP 0.7 percent at 10,436.29 (close) 

Paris - CAC 40: DOWN 0.2 percent at 7,962.39 (close)

Frankfurt - DAX: DOWN 0.6 percent at 23,168.08 (close)

Tokyo - Nikkei 225: DOWN 2.4 percent at 52,463.27 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 25,116.53 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,919.29 (close)

Euro/dollar: DOWN at $1.1535 from $1.1589 on Wednesday

Pound/dollar: DOWN at $1.3224 from $1.3305

Dollar/yen: UP at 159.63 from 158.82 yen

Euro/pound: UP at 87.22 pence from 87.10 pence

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