Trump says U.S. is 'hopefully' toward the end of war with Iran as conflict expands

U.S. President Donald Trump has said the country is "hopefully" toward the end of its nearly seven-month war with Iran, as fighting continues to escalate between Saudi Arabia and the Iran-backed Houthis in Yemen.

"Well, hopefully we are toward the end of the war. They want to make a deal, we'll see how that works out," Trump told reporters in North Carolina on Wednesday evening.

The U.S. president also said he had spoken with Tehran "directly," without providing further details. His comments come as the sprawling Middle East conflict, which started on Feb. 28, expands into Yemen, further disrupting energy exports and rattling oil markets.

The Houthis have ramped up attacks on targets in Saudi Arabia and launched a lightning ground offensive to exercise control of the Bab el-Mandeb Strait, a vital oil choke point that connects the Red Sea to the Gulf of Aden and to global markets.

Trump is planning to meet Gulf leaders on the sidelines of the United Nations General Assembly in New York next Tuesday to discuss next steps for the war with Iran, Axios reported Thursday.

The report came as Washington's efforts to resume ceasefire talks appear to have stalled, as Gulf states absorb escalating attacks from Iran and Iran-aligned Houthi militants in recent days.

Trump is expected to meet leaders from the six Gulf Cooperation Council states — Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman — with the guest list possibly widening to other Arab and Muslim leaders, according to the report.

The State Department sent initial invitations Wednesday, Axios reported, citing unnamed people with knowledge of the matter.

The discussion will focus on U.S. proposals for a postwar strategy, Axios reported, as Trump and his senior team work on a day-after plan that isn't expected to be finalized until after the U.S. midterm elections in November.

Israeli Prime Minister Benjamin Netanyahu also wants to meet Trump in New York, though no meeting has been scheduled, according to the report, which cited an Israeli source.

Economic costs

The latest diplomatic push comes as Gulf states face mounting economic costs from the conflict. Saudi Arabia shut its East-West Pipeline, a highly strategic network that transports crude oil from the kingdom's eastern coast to the port of Yanbu on the Red Sea, following the damage caused by a drone attack.

Oil prices were traded lower on Thursday after Saudi Arabia reportedly arranged additional shipments through Oman's Sohar port via ship-to-ship transfers, easing fears of a prolonged supply gap.

International benchmark Brent crude futures with November expiry fell 1.5% to $104.28 a barrel, while U.S. West Texas Intermediate futures with October expiry dipped 1.1% to $101.30.

On Wednesday, U.N. Secretary-General António Guterres repeated calls for de-escalation in the region, urging diplomacy and the restoration of freedom of navigation in the Strait of Hormuz. It remains unclear what Washington would require of Gulf states or Iran postwar.

Iran could be open to negotiating after the U.S. midterms, but continued reluctance to engage diplomatically risks dragging the conflict out for longer, said Michael Feller, chief strategist at Geopolitical Strategy.

"Iran may be willing to do a deal after the midterms. If not, the war may continue until late 2028, if not beyond," Feller said.

One source of relief would be repairs to the East-West Pipeline, he said, though export-terminal stockpiles will run out unless the line is restored within days.