American and Iranian officials met in New York this week on the sidelines of the United Nations, President Trump said, marking a point of contact even as the president publicly weighed two starkly different paths.

Trump described the meeting as lasting about three hours and said talks with Iran were continuing. He predicted a settlement would be reached, though he also suggested a deal might not come together until after the election. In the same period, he issued warnings, saying he faced what he called a "big decision" between making a deal or, in his words, moving to "annihilate" Iran, and separately threatening to send the country "into hell" if the war carried on.

The conflict has begun to affect energy markets far from the battlefield. Fighting near the Strait of Hormuz, the narrow passage through which much of the world's oil moves, has pushed fuel prices higher. Analysts said a global diesel shortage, worsened by the conflicts in Iran and Ukraine, could persist into 2027. In response, the Trump administration was examining whether a ban on diesel exports would be feasible, the Treasury secretary said, and the United States proposed a $10 billion fund with Arab allies aimed at bypassing the Hormuz chokepoint.

Regional governments have signaled caution. Gulf states planned to urge Trump not to escalate the conflict, and Iran's Revolutionary Guard issued a warning to Washington against further escalation.

The war has also become a pressure point inside Trump's own party. Republicans in tight Senate races have called for an end to the conflict. Iowa Senate nominee Hinson said Iowans "shouldn't have to foot the bill" for the war, and Senate Republicans were described as looking for an exit as the campaign trail intensified. A new poll showed Trump's approval on foreign affairs at the lowest level of his presidency, and separate polling indicated growing unease among Republicans over the Iran effort.

Trump has said he believes an agreement is within reach, while also keeping the option of a broader military campaign on the table. For now, the two governments remain in contact and the economic effects are being felt beyond the region.

References

1. 1.President Trump (public remarks) — meeting length, continuing talks, 'annihilate' and 'into hell' comments, prediction of a settlement
2. 2.Yahoo Finance — analyst warnings of a global diesel shortage persisting into 2027
3. 3.Financial Times — proposed $10 billion fund with Arab allies to bypass the Strait of Hormuz
4. 4.Treasury Secretary (statement) — administration examining feasibility of a diesel export ban
5. 5.Polling and campaign reporting — Trump's foreign-affairs approval, Republican unease, Senator-nominee Hinson's remarks, Senate Republicans seeking an exit
6. 6.Regional statements — Gulf states urging against escalation and Iran's Revolutionary Guard warning to Washington