Trump's statement is quite interesting—he took a clear position right before the stock market opened on Monday to stabilize it, and he specifically mentioned "five days," which clearly indicates he doesn't want the market to fall further this week on business days.

Unfortunately, Iran isn't naive either. You did assassinate their supreme leader, and his successor is his son. Iran right now is like a wolf that's tasted blood and won't back down until its demands are met.

Iran itself is well aware that as long as they blockade the Strait of Hormuz, global oil prices will skyrocket, inflation will spread everywhere, and the Federal Reserve will have to shift its rate-cut expectations to rate hikes instead—exactly the scenario Trump least wants to see. Plus, midterm elections are approaching.

So Iran is definitely planning to hold firm now, refusing to let go unless the US provides war reparations. The longer this drags on, the more disadvantageous it becomes for America.

What comes next depends on what other harsh measures Trump has up his sleeve. Otherwise, everything we're seeing is just a rebound, not a reversal.