New reports indicating President Donald Trump could soon end the war with Iran without a showdown over the Strait of Hormuz sent 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 said the Strait of Hormuz, which Iran has blocked during the war, will reopen when the 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 said. “I would imagine whoever’s controlling the oil will be very happy to open the strait.”
Trump’s comments came on the heels of a report from the Wall Street Journal that indicated Trump’s goal was to end the conflict within four to six weeks of its Feb. 28 start date, and forcing the strait open would go beyond that timetable.
The Journal said the U.S. should achieve the main goals of the war and assume the strait will reopen after peace is restored.
That was just what the markets wanted to hear, according to CNBC.
The Dow Jones Industrial Average was up 1,125.37 points, which comes to 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 rose 3.83 percent to 21,590.63.
The markets have not had such a blue sky day since May 2025.
An unconfirmed report that said Iranian President Masoud Pezeshkian is willing to wind down the war with some guarantees added to the market spurt.
“Any steps toward ending the war overall, the stock market likes, and so, you are getting that relief rally,” Eric Diton, president at The Wealth Alliance, said. “But no, we’re not out of the woods.”
“The bottom line is, if we haven’t solved the oil problem, then that continues to put pressure,” Diton added.
“What you’re seeing in capital markets today is speculation around an earlier off-ramp, or a cessation of hostilities,” Bill Northey, senior investment director at US Bank Wealth Management, said, according to the New York Post.
“Details are light, but the capital markets are looking for any indication that there is an opportunity for a more normal flow of energy through the Strait of Hormuz.”
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