Trump reportedly considering war exit, sending oil prices down and stocks up as investors anticipate reduced military spending and lower energy demand.

Markets reacted swiftly to the report, with crude oil futures declining sharply on expectations that a drawdown of forces could depress global oil demand and prices. Simultaneously, sectors sensitive to defense spending and energy costs, such as aerospace and energy services, saw gains as the potential shift in policy reduced near-term risks.

The report, attributed to unnamed sources, highlights how geopolitical developments continue to significantly influence financial markets. While the full implications remain uncertain, the immediate market reaction underscores the sensitivity of energy and defense-related stocks to changes in U.S. military engagement overseas. Investors will now watch closely for official statements clarifying the administration's stance on the conflict.

Oil futures fell sharply, while stocks in defense and energy services rose.