Investing.com -- U.S. stock markets surged Monday afternoon following comments from President Trump suggesting the conflict with Iran could conclude soon, while oil prices declined from recent highs.

Major averages rallied after CBS posted excerpts from an interview with Trump on X. The president indicated the war could be over soon, stating "I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force." Trump added that the U.S. is "very far" ahead of his initial 4-5 week estimated timeframe.

When asked about Iran’s new Supreme leader Mojtaba Khamenei, whom Trump has openly criticized, the president said "I have no message for him. None, whatsoever." Trump indicated he has someone in mind to replace Khamenei but did not elaborate.

Oil prices retreated from earlier gains that had pushed crude to its highest levels since mid-2022. The recent surge in energy prices stemmed from constricted supply due to shipping disruptions as the U.S.-Israeli war on Iran entered its tenth day.

The market response reflected a shift in sentiment as investors weighed the potential for reduced geopolitical tensions in the Middle East.