Tokyo equities fell sharply on April 2, with the benchmark Nikkei 225 ending more than 2% lower as a sell-off gathered pace following remarks by US President Donald Trump that reignited concerns the Iran war could be prolonged, Kyodo News reports.

The 225-issue Nikkei Stock Average closed down 1,276.41 points, or 2.38%, at 52,463.27. The broader Topix index fell 59.23 points, or 1.61%, to 3,611.67.

On the Prime Market, declines were led by oil and coal product, insurance and nonferrous metal stocks.

The US dollar briefly strengthened into the mid-JPY159 range in Tokyo trading amid renewed demand for safe-haven assets after Trump’s speech, as uncertainty over efforts to end the conflict increased.

Shares had opened higher, tracking overnight gains on Wall Street, after Trump indicated on social media that Iran’s new leadership had sought an end to the war. However, sentiment deteriorated as his subsequent speech offered no indication of an imminent resolution and instead suggested the possibility of further strikes, according to market participants.

Trump indicated that the US remained on course to achieve its military objectives but signalled that Iran would face intensified attacks over the coming two to three weeks. He also warned that US forces would target Iran’s power infrastructure heavily in the absence of an agreement.

The remarks prompted selling on concerns that the Middle East crisis could drag on, even as Trump emphasised US progress in the conflict.

Rising oil prices added to downward pressure on equities, with the benchmark West Texas Intermediate crude futures contract climbing above $100 a barrel following the speech.