Dow Jones & Nasdaq Surge as Trump Signals Iran War De-escalation in 2026

U.S. stock markets surged at Tuesday's open following reports that President Donald Trump is pushing to wind down hostilities with Iran, prioritizing strategic military objectives over a full reopening of the critical Strait of Hormuz. According to a Wall Street Journal report, Trump and aides determined that forcibly opening the chokepoint would extend the conflict beyond his stated four-to-six-week timeline, leading to a shift in focus away from the strait. The President has since called on other nations to launch their own operations to secure the vital waterway.