Trump says U.S. considers ‘winding down’ Iran military effort

President Donald Trump said he was considering “winding down” US military efforts against Iran, saying that the US was close to achieving its objectives as the conflict, which has roiled financial markets and the region, nears a fourth week.

“We are getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East,” Trump said in a social-media post on Friday. He cast those objectives as “Completely degrading” Iran’s missile capabilities, “destroying” the country’s defense industrial base, eliminating their navy and air force, never allowing Tehran to get close to “Nuclear Capability” and protecting Middle Eastern allies.

Trump’s comments came shortly after he ruled out a ceasefire and kept the door open to deploying ground troops, highlighting how the president continues to send wildly divergent signals about his objectives and plans for the US and Israeli war on Iran.

It is also unclear how Iran would respond to any unilateral decision by the US to pause strikes after recent attacks that targeted the country’s energy infrastructure and killed more high-profile officials, including security chief Ali Larijani. Iranian officials have become reluctant to even discuss reopening the Strait of Hormuz as Tehran continues to launch retaliatory strikes at Gulf Arab neighbors. 

Trump also addressed the strait, a critical waterway that carries roughly a fifth of global oil and natural gas flows and has been all but closed since hostilities began. Trump has been pressuring allies to help the US secure the strait militarily but indicated Friday that he will leave that effort to other nations.

“The Hormuz Strait will have to be guarded and policed, as necessary, by other Nations who use it — The United States does not!” Trump said. “If asked, we will help these Countries in their Hormuz efforts, but it shouldn’t be necessary once Iran’s threat is eradicated. Importantly, it will be an easy Military Operation for them.”

Trump’s comments capped a tumultuous Friday in financial markets following a Bloomberg News report that an increasingly dug-in Iranian regime was refusing to negotiate over Hormuz and with reports the US is preparing options to deploy ground troops.

Earlier: Iran Unwilling to Talk About Hormuz as Regime Digs In

Oil prices surged again Friday with global benchmark Brent closing above $112 a barrel, the highest since mid-2022. Prices eased to trade near $108 a barrel in thin post-settlement trading on Trump’s comments about possibly winding down the conflict.

Global stocks extended their losses, with the US equity benchmark falling steeply to end the weekly nearly 2% lower. Treasury yields climbed, as traders priced in a 50% chance of a Federal Reserve hike by October. Meanwhile gold saw its worst week in four decades.

Trump, a little over an hour before his social media post, had rejected the idea of declaring a halt to hostilities and expressed confidence Hormuz would reopen “itself” despite allies’ reluctance to offer assistance. 

“I don’t want to do a ceasefire. You know, you don’t do a ceasefire when you’re literally obliterating the other side,” the president had said at the White House. “We’re not looking to do that.”

Trump had expressed growing frustration in recent days after his calls for allies to help vessels transit the waterway were rebuffed, lashing out at US partners, including the North Atlantic Treaty Organization as well as China.

“NATO could help us, but they so far haven’t had the courage to do so. And others could help us, but we don’t use it,” the president said of the strait. “At a certain point, it’ll open itself.”

Read more: Trump Fans Iran Quagmire Fears With Debate on Seizing Kharg

Adding to the market turmoil was the administration’s consideration of a ground operation. Trump was evasive when asked by reporters about his plans for Kharg Island, Iran’s major oil export hub. US officials have said the White House is ordering hundreds of Marines to be deployed to the Middle East as it weighs a plan to seize the outpost.

“I may have a plan or I may not, but how would I ever say that to a reporter?” Trump said.

Any move to use ground troops to seize control of Iran’s energy facilities would pose risks for Trump, including by putting American forces at greater danger than they’ve already been exposed to in the conflict and adding to the cost and scope of the campaign. 

The Pentagon has asked for an additional $200 billion from Congress to pay for the war, sending another mixed signal on how long the administration expects the conflict to last. The regime in Tehran isn’t close to falling and Iranian officials are coalescing around the remaining leaders, according to western intelligence assessments and people familiar with the matter.

Higher gas prices are another challenge for Trump and his Republican Party ahead of November midterm elections. Retail gasoline and diesel prices in the US have jumped to the highest levels since 2022, with California’s energy regulator already warning against price gouging as some gas stations are charging as much as $8 a gallon.

This story was originally featured on Fortune.com