U.S. stocks rose on Tuesday as President Donald Trump said he expects the U.S. and Iran to make a "great deal" ahead of a ceasefire that's set to expire Wednesday.

"We're going to end up with a great deal," Trump said on CNBC's "Squawk Box" on Tuesday. "They have no choice. We've taken out their Navy, we've taken out their Air Force, we've taken out their leaders."

The president added, however, that the U.S. military is "ready" to bomb Iran if a deal is not signed by the ceasefire deadline and that he does not want to extend it.

This comes after Trump said earlier Tuesday in a Truth Social post that Iran "Violated the Cease Fire numerous times!"