SINGAPORE, April 2 (Reuters) - Stocks inched higher, the

dollar softened and oil slipped on Thursday as investors held

their collective breath ahead of a speech from U.S. President

Donald Trump that could outline the end of the war in the Middle

East and boost risk appetite.

The prospect of the end to the month-long U.S.-Israel war

with Iran has lifted global stocks and knocked the dollar off

its recent highs in the past two sessions after a brutal March

where soaring oil prices sent risk assets on a tailspin.

MSCI's broadest index of Asia-Pacific shares outside Japan

was a tad higher in early trading after clocking

its biggest one-day jump on Wednesday since November 2022.

Japan's Nikkei was poised for a strong start.

The United States will be "out of Iran pretty quickly" and

could return for "spot hits" if needed, Trump told Reuters on

Wednesday, ahead of his scheduled primetime address to the

nation at 0100 GMT on Thursday.

Trump and his top officials have offered a variety of

timelines for ending the war. He said on Tuesday that the U.S.

could ​end its military campaign against Iran within ‌two to

three weeks.

Analysts and investors will analyse the speech to gauge when

and how the Strait of Hormuz, a major fuel shipment route, would

reopen and ease the bottleneck in supply that has hit Asian

economies hard.

"A U.S. exit within the next few weeks would certainly

remove one massive layer of tension," said Tony Sycamore, market

analyst at IG. "However, it doesn't automatically guarantee

smooth sailing and energy flow through the Strait of Hormuz."

"The Iranian response will be critical, particularly whether

Tehran continues to leverage its geographical position by

imposing tolls or selective inspections on passing tankers and

strikes on its neighbouring countries' energy infrastructure,"

said Sycamore.

Iran has fired repeatedly on Gulf countries, some home to

U.S. bases, and is using the Strait of Hormuz, which carries a

fifth of global oil and liquefied natural gas, as leverage.

Higher energy prices in March stoked fears of global

inflation with worries about slowing growth also sapping

sentiment.

The U.S. dollar has been the haven of choice among investors

during the tumult but the prospect of a ceasefire has led to the

greenback weakening this week.

The euro last bought $1.1591 in early trading, holding on

to its recent gains. The Japanese yen was at 158.68 per

U.S. dollar inching away from the crucial 160 level that traders

worry could spur Tokyo to step in and intervene.

The front-month Brent contract for June fell 2.7%, to

settle at $101.16 per barrel, bouncing off a session low of

$98.35.