Trump says stock markets held up better than expected during Iran war

US President Donald Trump said Tuesday he is surprised by the resilience of financial markets during the ongoing war with Iran, while suggesting that the federal government could help struggling airline carrier Spirit Airlines.

Trump told CNBC that he had expected a much deeper market sell-off and a far sharper spike in oil prices when the war began.

"If you would have told me that oil is at $90 as opposed to $200, I would be frankly surprised," said Trump, adding that he had thought the Dow and the S&P 500 could fall as much as 20%.

He said the S&P 500 had largely returned to levels seen before the war, describing it as a stronger-than-expected performance after weeks of volatility tied to the intensity of the fighting.

Trump said alternative supply routes and sourcing had helped contain the shock in energy markets.

"Boats are finding other sources. They're going up to Texas and Louisiana. They're going to Alaska, they're going to other places. It's an amazing phenomenon," he said.

Stocks initially fell in the first weeks of the war amid heightened uncertainty, but rebounded after a ceasefire announcement nearly two weeks ago. Oil prices surged sharply, with US crude at one point rising above $112 a barrel, though prices later eased. Gasoline prices, however, remained above $4 a gallon, according to the American Automobile Association.

Spirit aid, airline relief in focus

Turning to the airline sector, Trump said the government could potentially step in to help Spirit Airlines, which is facing liquidation as it struggles to recover from a second bankruptcy filing in less than a year.

"I don't mind mergers. I think I'd love somebody to buy Spirit, as an example. You know, Spirit's in trouble," he said. "Maybe the federal government should help that one out."

Spirit has sought government aid in recent days as rising fuel costs add to pressure on its finances, according to CNBC. The airline had expected to emerge from bankruptcy in mid-2026 after selling aircraft and narrowing its network, but the jump in jet fuel prices since the war began on Feb. 28 has added a new burden.

US Transportation Secretary Sean Duffy is expected to meet executives from several low-cost airlines later Tuesday to discuss the effect of higher fuel costs, with carriers also expected to seek possible tax relief.