* Hopes of end to conflict evaporate after Trump speech

* Oil surges as stagflation risks swirl, denting risk

assets

* Stocks sharply lower as Trump speech provides little

clarity

* Investors likely to stay defensive as Trump ramps up

threats

(Updates to Asia afternoon)

By Ankur Banerjee

SINGAPORE, April 2 (Reuters) - Markets recoiled on

Thursday as war jitters over Iran deepened, with stocks sliding,

oil surging well over $100 per barrel and the dollar firming

after U.S. President Donald Trump dashed hopes for clarity on

when the Middle East conflict might end.

Trump said in a prime-time address that the U.S. would hit

Iran "extremely hard" within weeks, arguing that key military

objectives were close to being met and the conflict nearing an

end. He set no timeline for an exit, however, keeping investors

guessing about the scope and duration of the campaign.

The front-month Brent contract for June jumped over

6% to $107.69 per barrel as investors found little reassurance

in the speech, which failed to spell out when or how the Strait

of Hormuz - a critical fuel shipping route - would reopen to

ease supply disruptions hitting Asia hard.

"We have no additional certainty or clarity around timeline

from this address and this is what the market was looking for,"

said Jon Withaar, senior portfolio manager at Pictet Asset

Management in Singapore.

"The fact that we can expect 2-3 more weeks of action, boots

on the ground were not ruled out and that threats to hit

infrastructure were reiterated will put the market back on the

defensive, particularly as we come into the long weekend."

U.S. stock futures slid 1.3% while European futures

sank over 2%. Asian stocks were clobbered, with Japan's

Nikkei down 2.4% and South Korea's Kospi index

sliding 4.7%.

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

was down over 2%, with almost all regional

bourses in the red.

FADING CEASEFIRE HOPES, RISING STAGFLATION RISKS

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

with Iran 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 into a tailspin.

In the immediate aftermath of the speech, however, investors

were back to selling almost everything except the U.S. dollar

and sending oil prices higher.

The risk-off mood looks set to deepen ahead of the long

weekend, with many global markets shut on Friday. Investors are

likely to cut exposure quickly, wary that any prolonged

disruption to shipping through the Strait of Hormuz would

deliver a sharp blow to global growth.

"The only thing that really matters is whether the Strait of

Hormuz will open soon. Trump's speech doesn't imply this is

likely to happen as quickly as the markets were expecting," said

Prashant Newnaha, senior rates strategist at TD Securities.

Trump said the United States does not need the key oil

gateway and that it will open naturally once the conflict is

over.

Iran has fired repeatedly on Gulf countries, some of which

are home to U.S. bases, and is using the strait as leverage.

"His comments on the duration of other wars was notable, in

that even if the war with Iran lasts a few months, it's not as

long as prior wars," said Newnaha.

"Expect USD and oil to move higher while risk is shed."

Trump's comments also rekindled concerns over stagflation,

the toxic mix of high inflation and weak growth that roiled

markets in March.

Treasury yields jerked higher in Asia on fears the rising

inflation would close the door to any prospect of easier

monetary policy. Yields on 10-year notes climbed 5

basis points to 4.376%.

The bond market selloff is likely to continue in Europe with

Germany's bund futures and French OAT futures

also pointing lower.

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

during the tumult and the greenback rose against most currencies

following the speech. The euro weakened 0.5% to $1.1533.

The dollar index, which measures the U.S. currency

against six other units, was 0.5% higher at 100.05 after

dropping nearly 1% in the past two days on optimism of an end to

the war soon.