Trump Says Iran Seeks a Deal While Military Options Remain on Table
President Trump signals Iran wants diplomatic settlement but hasn't ruled out expanded military action, including airstrikes and seizing key islands.
President Donald Trump said Thursday that Iran is actively seeking negotiations and wants to reach a settlement with the United States, even as the Wall Street Journal reported he is weighing a significant escalation of military operations against Tehran. Trump made his remarks during a Fox Business interview, offering a rare dual signal of diplomatic openness alongside unresolved military pressure.
According to the WSJ, options under review by Trump include intensified airstrikes, the deployment of ground forces to seize Iranian islands near the strategically vital Strait of Hormuz, and targeted strikes on a fortified facility suspected of hosting covert nuclear activity. The report emphasized that Trump has not finalized any decision and continues to prefer a diplomatic resolution if one can be reached.
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On the economic front, Trump addressed several pressing domestic concerns during the same interview. He predicted oil prices would remain volatile for the near term, expressed confidence that inflation would ease by year-end, and reiterated his preference for lower interest rates — though he acknowledged a pause in rate moves would be preferable to a hike. He also noted he has respect for Fed Chair Kevin Warsh while suggesting Warsh's board may be resistant to his policy preferences.
Trump also said he wishes tariffs could be deployed more quickly, reinforcing his administration's continued use of trade pressure as a geopolitical and economic lever. The comments came against a backdrop of ongoing global uncertainty driven by Middle East tensions and unresolved trade disputes that have kept markets on edge.
The combination of potential military escalation near the Strait of Hormuz — a chokepoint for roughly 20% of global oil traffic — and Trump's own admission of near-term oil price volatility underscores the high stakes of the Iran standoff for both security and markets. Continue reading at Forexlive.
