CNBC Daily Open: Markets recover as Trump hints Iran war is nearing its end

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Oil prices extended declines Tuesday as investors assessed comments from U.S. President Donald Trump on a possible early end to the war as well as his warning to ramp up attacks on Tehran if it prevented the flow of oil via the Strait of Hormuz.

Earlier in a phone conversation with CBS News, Trump said he was considering seizing control of the Strait, adding that “the war is very complete, pretty much,” sending U.S. stocks higher. Asia markets also recovered, with South Korea’s Kospi trading more than 5% higher to lead gains in the region. Europe markets were set to open in the green as oil prices pared losses.

U.S. stock futures, however, were lower early Tuesday as traders assessed Trump’s latest comments that signaled a possible escalation over Strait of Hormuz. The critical chokepoint has been effectively closed, with a spokesperson for the Iranian Ministry of Foreign Affairs, Esmail Baghaei, warning that oil tankers passing through the waterway “must be very careful.”