President Donald Trump stated that the war with Iran is 'very close to over,' expressing confidence that authorities in Tehran are eager to agree to a peace deal, despite the failure of recent peace talks last weekend [1]. Trump emphasized the U.S. military's dominance, saying, 'We've beaten them militarily, totally,' and suggested that if the U.S. withdrew now, it would take Iran 20 years to rebuild, though he noted that operations are not yet finished [1].
The President's remarks come amid growing market optimism for a diplomatic resolution to the U.S.-Iran conflict. Trump downplayed recent global market turbulence caused by the war and the surge in oil prices due to supply disruptions, predicting that oil prices would soon fall and that the 'stock market is going to boom, it's already booming' once the war concludes [1].
A White House official confirmed that a second round of negotiations between Washington and Tehran is under discussion, though nothing has been officially scheduled as of Tuesday [1]. Trump also mentioned the possibility of fresh U.S.-Iran talks in Islamabad 'over the next two days,' after initially suggesting that talks might occur in Europe and could be 'a little bit slow' [1]. These statements indicate ongoing efforts to restart negotiations before the current two-week ceasefire expires next week [1].
Meanwhile, the U.S. has fully implemented a blockade of the Strait of Hormuz, a critical maritime passage controlled by Iran, effectively cutting off Tehran's international sea trade, according to U.S. Central Command [1].
CONCLUSION
President Trump's statements and ongoing diplomatic efforts have fueled market optimism for a resolution to the U.S.-Iran war, despite recent setbacks in peace talks. The full implementation of the Strait of Hormuz blockade and the anticipation of further negotiations underscore the high stakes and significant market impact of the situation.