US President Donald Trump said Monday that American military operations in Iran would be ending soon, seeking to calm global markets shaken by the ongoing conflict in the Middle East.
Stock markets had fallen and oil prices surged earlier in the day after Iran, now under new leader Mojtaba Khamenei, launched another wave of missile attacks at Gulf countries and signaled that the strategic Strait of Hormuz would likely remain closed.
However, markets recovered after Trump suggested the war would be short. Wall Street moved into positive territory, while stock markets in Tokyo and Seoul opened stronger on Tuesday.
Oil prices also dropped by as much as five percent after earlier rising above $100 per barrel — the highest level since Russia’s invasion of Ukraine in 2022.
“It’s going to be ended soon, and if it starts up again they’ll be hit even harder,” Trump told reporters in Florida, describing the military campaign as a “short-term excursion”.
Iran’s Revolutionary Guards responded on Tuesday, saying they — not the United States — would decide when the war ends.
The remarks came on the first day in power of Mojtaba Khamenei, the 56-year-old son of slain leader Ali Khamenei. Iranian forces launched new missile and drone attacks targeting Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Israel.
Another missile was also fired toward NATO member Turkey, the second such incident in five days, but the alliance’s air defense systems intercepted it before it reached its target.
Diplomatic efforts on Monday focused on reopening the Strait of Hormuz, a crucial global shipping route through which nearly 20 percent of the world’s crude oil normally passes.
French President Emmanuel Macron said his country and its allies were considering a “purely defensive” mission to reopen the strait and escort ships once the most intense phase of the conflict ends.
Meanwhile, Kamal Kharazi, a foreign policy adviser to Iran’s supreme leader, said Tehran believes economic pressure could eventually push other countries to intervene and help end the war.
Iran faced renewed US and Israeli strikes after its Assembly of Experts appointed Mojtaba Khamenei as the country’s new supreme leader — the first leadership change in 37 years.
Iranian state media showed large crowds celebrating the appointment in central Tehran, with many people carrying portraits of the new leader.
Iran’s allies, including the Houthi movement in Yemen and Hezbollah in Lebanon, pledged loyalty to the new leadership, while Russian President Vladimir Putin promised support.
Trump said he was “disappointed” with Mojtaba Khamenei’s appointment but remained open to political change from within Iran’s existing system.
Energy markets remain on edge as the conflict threatens oil supplies. Shipping experts say about 10 vessels near the Strait of Hormuz have come under attack since Iran blocked the route.
Global shipping company MSC said it was halting some export shipments from the Gulf, while Bahrain’s state energy company Bapco declared force majeure after strikes hit its Al Ma’ameer oil facility.
Saudi Arabia also reported that its air defenses intercepted a drone targeting an oil field in the kingdom’s eastern region near the UAE border.
