Financial markets were optimistic on Tuesday. Many people believed President Trump would soon end the conflict with Iran. This was a change from earlier in the week. Earlier, there was much worry in the markets. This new feeling came after White House statements and military actions in Tehran. Oil prices went down from their high levels. Stock markets in Asia and Europe also recovered.
The problem started when Iran's Guards threatened to stop oil exports. President Trump replied strongly. He said the U.S. would respond if Iran blocked oil. However, reports of U.S. and Israeli military actions soon followed. These included attacks on Tehran. Israel said it hit a weapons facility. They also said more attacks happened. Sources suggested Israel wanted to cause damage quickly.
Iran also had a change in its leaders. The country reportedly rejected U.S. ideas about leadership. Mojtaba Khamenei was named as the next supreme leader. This news did not seem to hurt market confidence.
President Trump spoke to the nation. He tried to calm investor fears. He said the conflict was "very complete." He thought it would end soon. His advisors were also putting pressure on him. They reportedly wanted him to explain how the U.S. would leave the conflict. They wanted him to say the U.S. had finished its main goals.
There were several reasons for this pressure. Advisors warned that a long conflict could hurt Trump's popularity. They also worried that a long war might upset conservative voters. These voters are important for his elections. Republican officials have received calls. Party members are worried about the conflict's effect on upcoming elections. Higher energy prices could increase costs for many things. This is a big economic and political issue. The President's words, military actions, and internal pressure seem to have sent a strong signal. Investors now think the Iran conflict will end quickly.