Markets Bet Trump Will End Iran War Soon Despite Escalating Threats
Iran’s Revolutionary Guards said on Tuesday they would not let any oil out of the Middle East until U.S. and Israeli attacks cease. Consequently, U.S. President Donald Trump threatened to hit Iran “twenty times harder” if it blocked exports.
Despite the defiant rhetoric from both sides, investors placed strong bets on Tuesday that Trump would call off his war soon. They hope to prevent the unprecedented disruption to energy supplies from triggering a global economic meltdown.
Tehran Under Fire: Civilians in Fear
On the ground, there was no sign of any letup. Tehran residents reached by Reuters described the overnight U.S.-Israeli bombardment as the fiercest of the war. “It was like hell. They were bombing everywhere, every part of Tehran,” said one resident, speaking on condition of anonymity. “My children are afraid to sleep now. We have nowhere to go.”
Moreover, additional strikes were launched later on Tuesday. A source familiar with Israel’s plans said the military tried to inflict as much damage as possible before the window for further strikes closes. They assumed Trump could end the war at any time.
Trump Reassures Markets, Iran Holds Firm
Meanwhile, Trump held a press conference on Monday that appeared to reassure markets he would stop the war before provoking an economic crisis. He said the U.S. inflicted serious damage and predicted the conflict would end before the four weeks he initially set out.
In a later Truth Social post, Trump warned: “If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America twenty times harder than they have been hit thus far.”
