* Hopes of end to conflict evaporate after Trump speech

* Dollar gains, oil surges as stagflation risks swirl

* Stocks turn sharply lower as Trump speech provides no

clarity

* Investors likely to stay defensive as Trump ramps up

threats

(Updates to Asia mid morning)

By Ankur Banerjee

SINGAPORE, April 2 (Reuters) - Markets recoiled on

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

oil surging 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, claiming military goals were

nearly achieved and the conflict was close to ending.

"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."

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.

U.S. stock futures slid 1% while European futures

sank over 1.5%. Asian stocks were clobbered, with

Japan's Nikkei down 1.8% and South Korea's Kospi index

sliding 3.6%.

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

was down over 1.5%, with almost all bourses in

Asia in the red.

The front-month Brent contract for June rose about

5% to $106.16 per barrel after 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.

"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

Prashan 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.

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 0.25% to $1.156.

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

against six other units, was 0.3% higher at 99.858 after

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

the war soon.