U.S. President Donald Trump has claimed the war with Iran is almost over, sparking hopes of a stock market boom and renewed diplomatic efforts.
Speaking in a pre-recorded interview broadcast on Wednesday on Fox Business Network’s “Mornings with Maria,” Trump expressed confidence in a swift resolution. “We’ve beaten them militarily, totally,” he said. “I think it’s close to over, I view it as very close to over. If I pulled up stakes right now it would take them 20 years to rebuild that country, and we’re not finished.”
He added, “We’ll see what happens, I think they want to make a deal very badly.”
These comments come as investors grow increasingly optimistic about a potential diplomatic breakthrough, despite recent setbacks in peace talks. The Associated Press reported on Wednesday, citing regional officials, that the U.S. and Iran have reached an in principle agreement to prolong their fragile two-week ceasefire and allow more negotiations.
A senior U.S. official told CNBC, however, that no formal extension has been agreed. “There is continued engagement between the U.S. and Iran to reach a deal,” the official said, speaking anonymously.
Reports suggest fresh talks could begin before the ceasefire expires next week. A White House source indicated on Tuesday that a second round with Tehran is under consideration, while Trump told the New York Post that meetings in Islamabad might happen within days.
Trump brushed off global market turbulence caused by the conflict, which has sent oil prices soaring past $120 per barrel amid supply disruptions in the Gulf. He defended U.S. military actions, stating, “We have to stop them from ever having a nuclear weapon,” and predicted economic rewards ahead. “The stock market is going to boom, it’s already booming.”
Markets reacted positively, with the Dow Jones rising 1.8 per cent on Wednesday. Goldman Sachs analysts forecast that a deal could cut oil prices by 20 to 30 per cent soon, boosting growth worldwide.
Meanwhile, the U.S. maintains a full blockade of the Strait of Hormuz, effectively isolating Iranian ports and crippling sea trade, according to U.S. Central Command. Regional powers like Saudi Arabia have ramped up alternative exports, and Oman is quietly facilitating contacts, as Harvard estimates put U.S. war costs above $1 trillion.
With talks looming, attention turns to whether diplomacy can deliver the peace Trump anticipates.