Key facts
- President Donald Trump is privately discussing with senior aides the potential to declare the US-Iran war over.
- The discussions follow recent Iranian missile and drone attacks on U.S. forces in the Middle East.
- Bitcoin saw a modest recovery, trading around $77,730, while oil prices also slipped slightly.
- Aides have cautioned Trump that further escalation could negatively impact Republican midterm election prospects.
- Secretary of State Marco Rubio has directed U.S. embassies to urge governments to cut trade with Iran.
President Donald Trump is engaged in private discussions with senior advisors regarding the potential formal declaration of an end to the US-Iran war. This development comes amidst recent escalations in the Middle East, including Iranian missile and drone attacks on U.S. forces and facilities in Kuwait, which were reportedly intercepted by Kuwaiti air defenses.
Sources indicate Trump favors the idea of ending the war, believing that continued economic pressure will compel Iran to dismantle its nuclear program or face regime collapse. However, some aides have reportedly warned that further military escalation could jeopardize Republican prospects in the upcoming midterm elections. Trump is reportedly planning to campaign in 35 key races to support the party.
Despite Iranian claims of hitting multiple U.S. bases, the U.S. has not issued a direct response to the recent attacks, a factor contributing to Bitcoin's modest recovery. The White House has expressed concerns about rising oil prices and critically low interceptor stockpiles. In line with efforts to pressure Iran, Secretary of State Marco Rubio has instructed U.S. embassies worldwide to demand governments immediately and systematically reduce trade with Iran.
Trump himself has recently commented that a renewed campaign against Iran "won't continue for too long." The conflict, which began with U.S. and Israeli strikes in late February, has seen multiple ceasefire attempts and interim agreements. In the financial markets, Bitcoin saw a rebound above $77,000, while oil prices, including WTI and Brent crude, slipped slightly from recent highs. New York Fed President John Williams suggested that rising Treasury yields are primarily driven by a strong U.S. economy and investments in AI and technology, rather than inflation concerns, indicating a potential easing of rate hike worries.