Oil prices experienced a significant drop on Monday afternoon, and stock markets turned positive after President Trump indicated in a phone interview with CBS News reporter Weijia Jiang that the conflict might be nearing its end.
“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.
These comments, shared on social media shortly after 3:15 p.m., led to an immediate downturn in energy markets as traders adjusted their expectations for crude oil prices, which had factored in the conflict for the past couple of weeks.
West Texas Intermediate crude saw a decline of up to 6%, falling from over $100 per barrel to a low of approximately $83.89 during the session, before recovering slightly to around $85.44 by late afternoon. Brent crude decreased by 1.55% to $91.25.
The Dow Jones industrial average climbed 239 points, closing with a 0.50% gain and erasing earlier substantial losses. The S&P 500 surged by 0.83%, and the Nasdaq saw a rally of 1.38%.
Trump’s statements marked the first indication of a potential de-escalation. In the preceding days, both parties had diminished hopes for a swift resolution.
Previously, Trump had called for “unconditional surrender” and warned that the U.S. military would broaden its target range, subsequently striking a fuel depot near Tehran over the weekend. Concurrently, Iran began targeting more civilian infrastructure in the Gulf region, including desalination plants.
The appointment of Mojtaba Khamenei as Iran’s new supreme leader also suggested that hard-liners were in control and prepared to continue hostilities rather than agree to a compromise to end the conflict.
Iran’s attacks on vessels in the Strait of Hormuz have effectively blocked the narrow passage, posing a threat to approximately 20% of the global oil supply.