“Wall Street Journal” opinion columnist Matthew Continetti on FOX News Channel’s “Special Report” said financial markets suggest a weakened Iranian regime is close to making a deal.

TRACE GALLAGHER, FOX NEWS: Yes, back to kind of the economic part of this, Matthew. I want to put these numbers up on the screen because this gives you an idea of what’s happened this week. You see the green arrows are all pointing in one direction. It was a good week. I know there is a lot of emotion in the markets, but if the president is correct, if they can go into Pakistan, if they can get some sort of deal settled on Monday and the strait really does open, this is a good thing. The blockade, I listen to General Jack Keane a lot. The blockade seemed to be extraordinarily effective, and keeping it in place might be another good thing. What do you think? MATTHEW CONTINETTI, AMERICAN ENTERPRISE INSTITUTE: I think the markets are leading indicators, and they are pointing to confidence that we soon may be able to strike a deal with the remnants of the Iranian regime. And I think the critical decision here, Trace, was the imposition of the blockade. Unlike in Venezuela, where the blockade came before the removal of Nicolas Maduro, in this case we had the strike against the ayatollah at the outset of the war, 38 days of intense bombing, almost 19,000 targets in total between the U.S. and Israel struck in Iran. And then this blockade, which is really exercising a vice on the Iranian economy. I think as Trump said in Arizona, we’re on the verge of a transaction that could change the whole shape of the Middle East and make the world and America a much safer place.

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