Major stock exchanges in the Asia Pacific gained in morning trade as investors weighed developments in the Middle East.
Japan’s Nikkei 225 and South Korea’s Kospi indexes each rose by more than 2%. Both countries are heavily reliant on oil that passes through the Strait of Hormuz.
Australia’s ASX 200 index was up by more 1.8%.
Hong Kong’s Hang Seng exchange and Shanghai’s composite each gained by around 1%.
The drop in oil prices on Wednesday suggests the market now thinks the chances of a prolonged supply disruption and other worst-case scenarios are less likely than before, said Goh Jing Rong from the Singapore Management University.
Trump’s remarks have raised hopes that the conflict will ease, but the drop in oil prices will only last if there is a “credible follow-through”, such as safe passage for vessels from the Gulf, he said.
Energy prices have soared since the war started, as Iran has effectively blocked the Strait of Hormuz, a narrow waterway which usually sees about 20% of the world’s oil and liquefied natural gas pass through each day.
The price of Brent crude rose back above $100 a barrel on Tuesday and even after the latest falls remains much higher than before the US and Israel launched attacks on Iran on 28 February.
Governments around the world have announced measures in recent weeks aimed at easing the impact of rising oil prices on their economies.
The heads of some of the world’s biggest companies have warned in recent days about the potential implications of the war.
On Tuesday, the boss of energy giant Shell said oil shortages could hit Europe next month.
Wael Sawan, chief executive of Shell, told an energy industry conference in Houston: “South Asia was first to get that brunt. That’s moved to South East Asia, North East Asia and then more so into Europe as we get into April.”
Larry Fink, the boss of US financial giant BlackRock, told the BBC that a global recession could be triggered if the price of oil hits $150 a barrel.
The cost of crude could stay above $100 – or possibly closer to $150 a barrel – for years if the conflict is not settled and Iran becomes a country that can be accepted again by the international community, he said.
That would hold “profound implications” on the economy and likely lead to a “stark and steep recession”.