Trump signals end of US Military Operations in Iran as markets stabilise

United States President Donald Trump has indicated that American military operations in Iran could end soon, a development that helped calm global markets rattled by the escalating conflict in the Middle East.

Speaking at a news conference in Florida on Monday, Trump said the campaign would likely be short-lived but warned that further action could follow if Iran continued hostilities.

“It’s going to be ended soon, and if it starts up again they’ll be hit even harder,” Trump said, describing the operation as a “short-term excursion.”

The conflict had triggered sharp market reactions earlier in the week, with global stocks falling and oil prices surging above $100 per barrel — the highest level since Russia’s 2022 invasion of Ukraine.

However, markets rebounded after Trump’s remarks, with Wall Street closing higher while stock markets in Tokyo and Seoul opened strongly on Tuesday.

Oil prices also reversed course, dropping by as much as five percent after the earlier spike.

The war has intensified following the appointment of Mojtaba Khamenei as Iran’s new supreme leader after the killing of his father, Ali Khamenei.

Iran has since launched missile and drone attacks targeting several Gulf countries, including Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Israel. A missile was also reportedly fired toward NATO member Turkey but was intercepted by air defence systems.

Tensions remain high around the strategic Strait of Hormuz, a key global energy route through which nearly 20 percent of the world’s crude oil passes. The waterway has been largely blocked since Iran moved to restrict tanker traffic in response to US-Israeli strikes.

French President Emmanuel Macron said allied countries were considering a defensive mission to reopen the strait and escort commercial ships once the most intense phase of the conflict subsides.

Meanwhile, Iran’s Revolutionary Guards said Tehran would determine when the war ends, signaling that the situation remains volatile despite diplomatic efforts.

The conflict has also spread across multiple fronts, with renewed exchanges between Israel and Hezbollah in Lebanon and missile attacks reported in Israel and Bahrain, raising fears of a broader regional escalation.