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A fragile war, volatile diplomacy, and global financial nerves collided Wednesday as U.S. President Donald Trump declared the Iran conflict is “very close to over,” while suggesting Tehran is eager to strike a peace deal. His remarks came as markets reacted to shifting signals of a possible diplomatic breakthrough, even as official talks remain unresolved.

The comments added fresh momentum to already tense negotiations, with investors watching closely for signs that could reshape oil flows, regional stability, and Wall Street direction.

Trump Signals Endgame in Iran Conflict

Speaking in a prerecorded interview aired on Fox Business Network’s “Mornings with Maria,” Trump projected confidence that the confrontation with Iran is approaching its final phase.

“We’ve beaten them militarily, totally,” Trump told Fox Business Network’s “Mornings with Maria” in a prerecorded interview. “I think it’s close to over, I view it as very close to over. ... If I pulled up stakes right now it would take them 20 years to rebuild that country, and we’re not finished.”

He doubled down on the belief that Tehran is under pressure to negotiate.

“We’ll see what happens, I think they want to make a deal very badly,” he added.

The remarks arrive at a critical moment, with global attention fixed on whether diplomacy can succeed after last weekend’s failed peace discussions.

Ceasefire Uncertainty Clouds Negotiations

Market optimism has been building around the possibility of a diplomatic resolution, but uncertainty remains high.

The Associated Press reported Wednesday, citing regional officials, that the United States and Iran have an “in principle agreement” to extend a fragile two-week ceasefire, giving both sides more time to pursue diplomacy.

However, a senior U.S. official told CNBC that Washington “has not formally agreed to an extension of the ceasefire.”

“There is continued engagement between the U.S. and Iran to reach a deal,” the official said, speaking anonymously due to the sensitivity of internal planning.

Multiple reports suggest negotiations could restart before the current ceasefire expires next week. A White House official told CNBC on Tuesday that a second round of talks was under discussion, but no session had been officially scheduled.

Trump also told the New York Post on Tuesday that renewed U.S. Iran discussions in Islamabad “could be happening over the next two days.”

Markets Watch Oil and Stability Signals

Financial markets have been reacting sharply to the conflict, particularly as disruptions push oil prices higher. Traders are now weighing whether easing tensions could reverse recent spikes.

Trump downplayed the turbulence, insisting stability would return quickly if diplomacy advances.

He also defended U.S. military action in the region, emphasizing national security concerns.

“We have to stop them from ever having a nuclear weapon.”

Looking ahead, Trump suggested that an end to the conflict would unleash economic upside.

“the stock market is going to boom, it’s already booming.”

Strait of Hormuz Blockade Raises Stakes

While diplomatic channels remain active, military pressure continues on the ground and at sea.

The Trump administration has moved forward with a blockade of the Strait of Hormuz, one of the world’s most critical energy corridors and a key passage for global oil shipments.

U.S. Central Command said late Tuesday that the blockade has been fully implemented, preventing ships from entering or exiting Iranian ports and effectively cutting off Tehran’s international sea trade.

The move adds another layer of economic strain to an already volatile standoff, raising concerns over supply chains and global energy security.