Iran War Could End Soon as Trump Announces U.S. Exit in '2–3 Weeks,' Iranian President Signals De-escalation

U.S. stocks surged Tuesday after President Donald Trump signaled that American forces could soon withdraw from Iran, while Tehran indicated a willingness to de-escalate the conflict under certain conditions.

Trump told reporters at the White House that U.S. military forces may leave Iran within "two or three weeks," suggesting the intervention could be nearing an end.

"We'll be leaving very soon," he said, adding that there was "no reason for us to do this" going forward. Despite the potential exit, Trump emphasized that U.S. forces have inflicted significant damage, noting that missile production facilities had been heavily targeted in recent fighting. "We're hitting them very hard," he said.

Markets responded sharply to the shifting tone. The Dow Jones Industrial Average jumped more than 1,100 points, while the S&P 500 and Nasdaq Composite surged nearly 3% and almost 4%, respectively, each posting their strongest gains since May 12, when the U.S. and China reached a temporary trade truce. The rally was also fueled by unconfirmed reports that Iran may be open to ending the war if key conditions are met.

Iranian President Masoud Pezeshkian said the country has the "necessary will" to end the conflict, but stressed that any resolution must include guarantees to prevent future aggression. "We possess the necessary will to end this conflict, provided that essential conditions are met," he said during a call with European Council President António Costa.

Costa described the situation as "extremely dangerous" and urged Iran to pursue de-escalation through diplomatic channels, including engagement with the United Nations and efforts to ensure freedom of navigation in the Strait of Hormuz.

At the same time, U.S. officials signaled that the coming days could prove decisive. Defense Secretary Pete Hegseth said negotiations are "ongoing" and "gaining strength," though he declined to rule out the possibility of deploying ground forces. "You can't fight and win a war if you tell your adversary what you are willing to do," he said.

The White House also indicated that diplomatic discussions are progressing, even as public messaging from Tehran remains more confrontational. Press Secretary Karoline Leavitt said talks are continuing and that Iran's private communications differ from its public stance.

Trump also appeared eager to wind down U.S. involvement, regardless of ongoing risks surrounding the Strait of Hormuz, suggesting other countries should secure their own energy supplies. In a post on Truth Social Tuesday, he wrote: "All of those countries that can't get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved... I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT. You'll have to start learning how to fight for yourself — the U.S.A. won't be there to help you anymore." He added that "Iran has been, essentially, decimated. The hard part is done."