Stocks surged to their largest one-day gains in a decade as investors bet the Iran conflict might end soon, driven by President Trump's reported willingness to conclude the war without reopening the Strait of Hormuz. The U.S. deployed a third aircraft carrier to the Middle East, while Defense Secretary Hegseth noted the lowest Iranian projectile launches in 24 hours, signaling potential conflict resolution. This market optimism sent indices sharply higher, reflecting reduced geopolitical risk premiums.

The deployment of additional naval power and declining Iranian attacks underscore a shift toward de-escalation. Trump's reported stance—ending hostilities without securing the vital shipping lane—aligns with recent intelligence suggesting Iran's military posture is weakening. Market participants are recalibrating risk, with energy stocks leading gains amid expectations of stabilized oil prices.

Investors are now pricing in a resolution, though skepticism remains. The rally reflects a broader reassessment of Middle East stability risks, with implications for energy markets and corporate earnings. While the conflict's end is far from certain, today's move signals a pivotal moment in geopolitical risk management.