Trump Expects Iran Deal but Keeps Military Option Open
President Donald Trump said on Tuesday that he expects the United States to reach an agreement with Iran to end the ongoing conflict. However, he emphasized that eliminating any remaining threat from Iran remains a top priority, even if negotiations take longer to conclude.
Speaking on CNBC’s Squawk Box, Trump expressed confidence in a positive outcome, stating that the U.S. is likely to secure a “great deal” with Iran. He added that Tehran has limited options, but made clear he would not rush into an agreement despite pressure from lawmakers for a quick resolution.
Military Pressure Remains on the Table
Trump outlined recent U.S. military actions, claiming that Iran’s naval and air capabilities, along with key leadership figures, have been significantly weakened.
He warned that if negotiations fail, the U.S. is prepared to resume strikes, noting that the military is “raring to go.” This highlights a dual-track approach of diplomacy backed by military readiness.
Ceasefire Deadline Adds Urgency
Uncertainty continues to surround the prospect of renewed talks, as a temporary two-week ceasefire is set to expire later this week. The approaching deadline is adding pressure to ongoing diplomatic efforts.
Trump Surprised by Market Resilience
Trump also commented on the performance of financial markets during the conflict, stating he expected a much sharper decline. He noted that he had anticipated a potential 20% drop in major indexes such as the Dow Jones Industrial Average and the S&P 500, along with oil prices rising toward $200 per barrel.
Instead, markets have shown relative resilience, defying those expectations.
Warsh Rate Cut Expectations in Focus
The president reiterated his stance on monetary policy, saying he would be disappointed if Kevin Warsh—his nominee for Federal Reserve Chair—does not push for aggressive interest rate cuts.
Warsh is set to face a Senate confirmation hearing, with investors closely watching for signals on future Fed policy and the central bank’s independence following ongoing tensions between Trump and current Fed Chair Jerome Powell.
AI, Tariffs and Corporate Strategy Comments
Trump also indicated that a potential agreement could allow Anthropic’s artificial intelligence models to be integrated into the Department of Defense, suggesting growing interest in AI capabilities at the federal level.
On trade policy, he said he would take note of companies that choose not to seek refunds for tariffs previously ruled illegal by the Supreme Court. Trump maintained that tariffs would ultimately generate higher revenues for the U.S., even if the system becomes more complex.
Airline Industry Remarks Move Stocks
In the aviation sector, Trump stated he would oppose a merger between United Airlines and American Airlines, while expressing support for a potential acquisition of Spirit Airlines.
Shares of American Airlines declined in premarket trading following his comments.
