Stocks stage massive upside reversal as oil plunges after Trump says Iran war could be over soon
Oil prices plunged on Monday afternoon and equities went back into the green after President Trump suggested to CBS News reporter Weijia Jiang in a phone interview that the war may be winding down.
“NEW—In a phone interview, President Trump told me the war could be over soon: ‘I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force.’ He added that the U.S. is ‘very far’ ahead of his initial 4-5 week estimated time frame,” she posted on X.
The comments, posted to social media just after 3:15 p.m., triggered an immediate selloff in energy markets as traders rushed to reprice the conflict that had been baked into crude for a couple of weeks now.
West Texas Intermediate crude fell as much as 6%, dropping from above $100 per barrel to a session low near $83.89 before recovering slightly to around $85.44 by late afternoon. Brent crude fell 1.55% to $91.25.
The Dow Jones industrial average jumped 239 points to close up 0.50%, wiping out steep losses earlier in the session. The S&P 500 surged 0.83%, and the Nasdaq rallied 1.38%.
Later on Friday, Trump said also he plans to waive oil-related sanctions and claimed “we’ve already won in many ways, but we haven’t won enough.”
When asked if the war would end this week, Trump replied, “No,” but added, “Very soon.”
Trump’s remarks were the first signs of potential de-escalation. In recent days, both sides had crushed hopes for a quick endgame.
Previously, Trump demanded “unconditional surrender” and warned the U.S. military would expand its range of targets, then hit a fuel depot near Tehran over the weekend. Meanwhile, Iran began targeting more civilian infrastructure around the Gulf, including desalination plants.
The selection of Mojtaba Khamenei as Iran’s new supreme leader was also a signal that hard-liners are in charge and poised to continue fighting instead of agreeing to a compromise that ends the conflict.
Iran’s attacks on ships in the Strait of Hormuz have effectively closed off the narrow waterway, threatening to block 20% of the world’s oil supply.
This story was originally featured on Fortune.com