Oil prices soared and stocks sank after Donald Trump vowed in a televised speech to hit Iran “extremely hard” over the coming weeks, knocking investors’ hopes of a near-term end to the conflict in the Middle East.

Brent crude prices jumped by 8% on Thursday morning to pass $109 a barrel, reversing Wednesday’s drop when hopes of a de-escalation in the Iran war pushed the international benchmark below the $100-a-barrel mark at one point.

Stocks in Asia suffered, with Japan’s Nikkei index falling 2.4%, while China’s CSI 300 index dropped 1.36%. South Korea’s Kospi, which has been particularly sensitive to the crisis, tumbled by 4.8%.

In Europe, Germany’s Dax share index fell 2%, while France’s Cac 40 dropped by 1.15% and…