- Stocks soar, oil slips -

Stocks rallied and oil slumped after US President Donald Trump said the Middle East war may be over within weeks and his Iranian counterpart said Tehran had "the necessary will" to end the conflict.

International benchmark Brent North Sea crude fell five percent to $98.77 a barrel, and the main US oil contract WTI dropped around four percent to $97.28 a barrel.

European stock markets surged on opening, following sharp gains in the United States and Asia.

- Germany outlook dims -

Leading economic institutes cut their growth forecasts for Germany on Wednesday, warning that surging inflation resulting from the Middle East war and rising energy costs would hit Europe's top economy hard.

The German economy should grow by 0.6 percent in 2026, the seven institutes said, down from a September forecast of 1.3 percent, while inflation is predicted to stand at 2.8 percent, up from 2.0 percent.

- India fuel hike -

India's oil ministry said domestic jet fuel prices would rise as the Middle East war pushed up energy costs, but that it had cushioned airlines from an expected 100 percent jump.

- Kuwait airport hit -

Kuwait's international airport had come under an Iranian drone attack that led to "a large fire" at fuel tanks, though no casualties were reported, the civil aviation authority said.

And in a further sign of strain in the Gulf state, the National Bank of Kuwait said it would close its headquarters for two days along with another branch, as Iran carries out daily strikes on the Gulf.

- Save fuel, Australians -

Australian Prime Minister Anthony Albanese urged his countrymen to switch to public transport and save fuel for rural communities and essential services.

"Farmers and truckies, small businesses and families are doing it tough. And the reality is, the economic shocks caused by this war will be with us for months," he said in a national address.

- Cambodia farmers suffer -

The price of diesel in Cambodia spiked to double the level at the start of the Middle East war after the latest government increase. Farmers are being particularly hard hit as they rely on the fuel for tractors and water pumps.

- Tanker struck off Qatar -

A tanker has been hit by a projectile off the coast of Qatar's capital Doha, a British maritime security agency said Wednesday, reporting damage but no casualties.

- Desalination plant hit -

Strikes have knocked out a desalination plant on Qeshm Island in the Strait of Hormuz, Iranian media reported, without saying when the attack took place.

"One of the desalination plants on Qeshm Island was targeted... and is now completely out of service, as it is not possible to repair it in the short term," the ISNA news agency reported, quoting health ministry official Mohsen Farhadi.

- China ships transit -

China's foreign ministry thanked "the relevant parties" on Tuesday for helping three Chinese ships to transit out of the Strait of Hormuz.

Two container vessels belonging to shipping giant Cosco passed through the strait on Monday, tracking data showed. Beijing gave no details on the third ship.

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