President Donald Trump said Wednesday that reaching a deal with Iran is not his preferred outcome, even as his Middle East envoy Steve Witkoff continues talks with Tehran.
Speaking at a campaign rally in San Antonio, Trump said Witkoff was “doing very well” in negotiations, but added that a deal was not something he particularly wanted and claimed Iran was willing to make major concessions to stop the conflict.
Trump also said the war with Iran should end soon and repeated that Tehran would not be allowed to obtain a nuclear weapon.
The remarks came as U.S. officials said the Pentagon has been asked to prepare new military options for Iran.
NBC News reported that Trump and his national security team have discussed the possibility of resuming large-scale U.S. military operations in the coming weeks, including strikes that could occur before the November midterm elections.
Axios separately reported that U.S. Central Command has been instructed to finalize preparations for potential major combat operations, although Trump has not made a final decision to launch new strikes.
Diplomatic efforts are continuing at the same time. The United States and Iran have recently held indirect discussions over Tehran’s nuclear program, while Washington has pushed for any agreement to include meaningful restrictions on uranium enrichment.
For markets, the immediate focus remains energy.
Any renewed U.S.-Iran military escalation could threaten shipping through the Strait of Hormuz and put additional upward pressure on oil prices, inflation expectations and Treasury yields.