Trump said on Wednesday that the US military had nearly accomplished its goals in Iran, but declined to set a concrete timeline to wind down the conflict.

The US would continue to hit targets in the Islamic Republic over the next two to three weeks, and assured viewers it would finish the job “very fast”.

“The only thing that really matters is whether the Strait of Hormuz will open soon,” said Prashant Newnaha, senior rates strategist at TD Securities.

“Trump’s speech doesn’t imply this is likely to happen as quickly as the markets were expecting. Threats that the US will strike Iranian power plants if no deal is reached and that it will bring Iran back to the Stone Age point to further escalation.”

At the midday break, the benchmark Shanghai Composite index fell 0.53%, while the blue-chip CSI300 Index lost 0.74%.

Meanwhile, in Hong Kong, the benchmark Hang Seng Index dropped 1.1% and the city’s tech shares plunged 2.2%.

Semiconductor shares were among the biggest losers in morning deals, as Trump’s comments dented risk appetite, with industry-tracking sub-indexes in mainland China and Hong Kong losing 2.49% and 2.29%, respectively.

Oil prices climbed more than US$5 on Thursday, as the comments fanned investor fears about sustained disruptions to supply.

Several Chinese airlines, including top carrier Air China 601111.SS, said they would raise domestic fuel surcharges from April 5, as the Iran war drives up prices of jet fuel.