U.S. President Donald Trump indicated a potential readiness to end the conflict with Iran, lifting market optimism and helping stabilize global energy prices. Reports state Trump suggested peace talks with the Islamic Republic could restart "within the next two days." He mentioned that a two-week truce agreed upon after nearly six weeks of fighting may not require an extension, hinting at possible significant progress soon, though he provided no specifics. "I think the next two days are going to be very interesting," Trump remarked. In an interview, he also expressed his view that the war is "coming to an end."

Signs indicate Iran is also attempting to de-escalate tensions, with authorities considering a suspension of transit activities through the strategic Strait of Hormuz. This move appears aimed at avoiding challenges to the U.S. blockade policy and preventing harm to a new round of negotiations. The shift in Washington's rhetoric—from announcing a full blockade of the Strait to anticipating a potential breakthrough—leaves many questions unresolved, including the disposition of Iran's enriched uranium. While Israel insists this material must be removed, Trump expressed dissatisfaction with reports suggesting the U.S. demanded Iran agree to a twenty-year suspension of enrichment, stating America cannot allow Iran to possess nuclear weapons.

Despite this, Trump's optimistic assessment of the situation has improved global market sentiment, with several major indices recouping losses incurred since the war began in February. Oil prices showed a recovery on Wednesday after a sharp decline the previous day. Trump did not explicitly state whether the U.S. would continue negotiations with Iran to reach a formal agreement, nor did he commit to withdrawing troops in the absence of a peace plan. He told media, "The outcome could be good or bad, but I think it's better to have a deal, because then they can rebuild."

The situation around the Strait of Hormuz continues to be a focal point for global markets. The U.S. is intensifying its blockade of the strait to curb Iranian oil exports. U.S. Central Command stated the blockade took effect Monday and is fully enforced. Interceptions by the U.S. Navy appear to have forced some vessels to turn back into the Persian Gulf. A supertanker bound for Iraq is currently navigating the route, which would be the first crude carrier to travel westward through the strait since the U.S. blockade began.

The U.S. Treasury Department recently noted that a temporary waiver allowing the purchase of some Iranian oil is set to expire this weekend. A similar waiver for Russian oil expired last week; these measures were initially implemented to mitigate the global energy shock caused by the conflict. However, U.S. retail gasoline and diesel prices have reached their highest seasonal levels on record, which is expected to strain consumers during the summer travel season.

The war has damaged energy infrastructure in the Gulf region and disrupted oil and gas supplies beyond the area, causing market volatility and raising concerns about a global inflation crisis. Prior to the conflict, approximately one-fifth of the world's oil and liquefied natural gas transit passed through the Strait of Hormuz. The International Energy Agency stated Tuesday that global oil demand is projected to decline this year for the first time since the 2020 pandemic, as price surges stemming from the Middle East conflict have erased previously expected demand growth. The agency also warned that "the Iran war has completely upended the global oil consumption outlook," and that "demand destruction will spread as scarce supply and high prices persist."

At the time of writing, Dow Jones futures were up 0.03%, S&P 500 futures rose 0.04%, and Nasdaq futures increased 0.09%. WTI crude futures climbed 0.36% to $91.61 per barrel, while Brent crude futures advanced 0.85% to $95.60 per barrel.