Trump Signals Iran War Nearing End, Stocks Rally and Oil Slips

Donald Trump signaled the Iran war may be nearing an end even as U.S. forces kept a blockade in place and shipping through the Strait of Hormuz remained under strain. His comments pushed Wall Street higher and sent oil prices lower, showing how quickly traders moved on political signals that were not yet matched by clear battlefield or diplomatic evidence.

Trump said peace talks with Iran might restart over the next two days and told ABC News that extending a two-week ceasefire may not be necessary. CNBC also reported him saying the war was "very close to over" and that Tehran was eager for a peace deal. The remarks were enough to revive hopes that the conflict, which began on February 28, could be headed toward a truce after weeks of market whiplash.

The reaction was immediate. The S&P 500 erased its decline since the Iran war began, while the Nasdaq and Dow also advanced. NBC reported the S&P 500 rose more than 1%, the Nasdaq gained 1.2% and the Dow jumped 302 points, pushing the blue-chip index back into positive territory for 2026. Oil slipped as traders priced in the possibility of renewed talks and a longer-term pause in fighting.

The gap between rhetoric and reality remained wide. The U.S. blockade of Iranian ports and coastal areas began on April 13 at 10 a.m. ET, with more than 10,000 U.S. military personnel and more than a dozen warships enforcing it. In the first 24 hours, six merchant vessels turned around, and no ships made it past the blockade. The pressure matters far beyond one war zone: the Strait of Hormuz carries about a fifth of the world’s oil supplies, making every sign of de-escalation a direct trigger for energy markets.

Diplomatic efforts also remained unsettled. Pakistan was pushing both sides to resume negotiations before the ceasefire expired, while China said it would play a "constructive role" in promoting peace talks. Even as Trump projected an endgame, the blockade, the naval buildup and the fragile ceasefire suggested that investors were reacting to hope more than to a settled peace.