Trump says US is hopefully near the end of the war in Iran

The comment comes as Gulf states weigh their own talks with Tehran and a US-contracted ship is hit in a fresh round of Gulf shipping attacks.

President Trump said the United States is hopefully nearing the end of the war in Iran.

The conflict has drawn in wider parties. Antony Blinken said Gulf states are looking to open their own talks with Tehran, and said Trump has put the US in a very difficult position on Iran. US officials have held talks with Houthi representatives in Oman, a possible sign of an off-ramp from escalation. Iran's security chief has said talks will not happen until its demands are met, while Vice President Vance has described the conflict as entering a managed phase. A US-contracted vessel was struck in an Iranian attack this week, part of a continuing pattern of strikes on commercial shipping.

The war has already left a mark on prices. Ursula von der Leyen has said the conflict added €90bn to the EU's fossil fuel import bill. Bank of Canada council members have said gasoline prices remain high and cited the conflict, along with trade uncertainty, in clouding the growth outlook since July.

The Federal Reserve just raised interest rates to a range of 3.75% to 4%, with Chair Kevin Warsh pointing to inflation still running hot. Trump has renewed his call for lower US rates and wants it done quickly. Talk of de-escalation from Trump lines up with his administration's effort to bring down the geopolitical risk premium that has pushed oil prices higher and fed the inflation concerns the Fed has cited. A resolution in Iran would remove one of the obstacles standing in the way of his push for lower rates, and would strengthen his argument that the Fed should be easing.