President Donald Trump said on Monday that United States military operations in Iran would end soon, a statement that helped calm global markets rattled by the escalating conflict in the Middle East.
The ongoing war had triggered sharp reactions in global financial markets, sending stock prices down and oil prices surging earlier in the week. Tensions intensified after Tehran, now led by Mojtaba Khamenei, launched a fresh barrage of missiles toward neighbouring Gulf countries and indicated that the strategic Strait of Hormuz would likely remain closed.
However, financial markets rebounded after Trump signalled the conflict might be brief. Wall Street moved into positive territory, while markets in Tokyo and Seoul also opened higher on Tuesday.
Oil prices also reversed course, falling by as much as five percent a day after benchmark crude surged above $100 per barrel — its highest level since the Russian invasion of Ukraine.
Speaking at a news conference in Florida, Trump said the military campaign would not last long.
“It’s going to be ended soon, and if it starts up again they’ll be hit even harder,” he said, after earlier describing the operation to lawmakers as a “short-term excursion.”
Iran’s Islamic Revolutionary Guard Corps responded on Tuesday, declaring that Tehran, not Washington, would determine when the war ends.
The remarks came as Iranian forces launched another wave of missile and drone attacks targeting Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Israel.
A separate missile was also fired toward Turkey, a member of North Atlantic Treaty Organization, marking the second such incident within five days. NATO air defence systems intercepted the missile before it could reach its target.
Diplomatic efforts on Monday focused on reopening the Strait of Hormuz, a vital shipping route through which nearly 20 percent of the world’s crude oil normally passes. The closure of the waterway has sent shockwaves across the global economy.
President Emmanuel Macron said France and its allies were working on a “purely defensive” naval mission aimed at reopening the strait.
The proposed operation would involve escorting commercial ships once the most intense phase of the conflict subsides. However, analysts warn that such a mission could expose naval vessels to attacks from Iranian forces along the nearby coastline.
Meanwhile, Iranian foreign policy adviser Kamal Kharazi told CNN that Tehran believes mounting economic pressure could push other countries to intervene diplomatically and help end the war.
