Trump Says He Has No Regrets Over Iran War as U.S. Economic Pressure Intensifies

U.S. President Donald Trump has defended his decision to go to war with Iran, saying he has no regrets about launching the conflict despite growing economic pressure from higher oil prices and concerns about its impact on the November midterm elections.

In an interview with Fox News, Trump said that if he had the opportunity to make the decision again, he would take the same action. He argued that preventing Iran from developing a nuclear weapon remains a central objective of the U.S. campaign. Trump also rejected suggestions that the conflict was weakening support among his political base.

Trump Links War Strategy to Iran’s Nuclear Program

Trump said the U.S. military campaign was intended to weaken Iran’s nuclear capabilities and maintained that Tehran should not be allowed to develop a nuclear weapon.

He also predicted that the war could end immediately after the U.S. midterm elections in November. Trump has previously argued that Iran is attempting to influence the election outcome, while saying that continued U.S. economic pressure could eventually force Tehran to change its position.

The comments come as the conflict continues to affect energy markets, shipping routes and investor expectations around inflation and interest rates.

Oil Prices Keep Economic Pressure Elevated

The biggest financial consequence of the conflict remains the sharp increase in energy prices.

Brent crude futures climbed to a four-month high of around $109.97 a barrel on Friday and were on track for a weekly gain of roughly 13%. Rising attacks around key Middle Eastern shipping routes have increased concerns about prolonged disruption to global oil supplies.

Higher crude prices create a difficult environment for the global economy. Expensive oil raises transportation, manufacturing and energy costs, potentially feeding into consumer inflation.

For the United States, the timing is particularly sensitive. Higher gasoline, diesel and other energy costs could put additional pressure on households while also creating a political challenge for the Trump administration ahead of the midterm elections.

Markets Reprice Fed Rate Expectations

The oil shock is also changing expectations for U.S. monetary policy.

Investors are increasingly concerned that sustained energy inflation could prevent the Federal Reserve from easing policy and could even increase the probability of another rate hike.

According to Reuters, markets were pricing around a 72% probability of a Federal Reserve rate hike at the following week’s meeting, up from 49% a week earlier. The U.S. two-year Treasury yield, which is particularly sensitive to expectations for Fed policy, climbed to its highest level since July 2024.

The development represents a major shift in market expectations. Instead of focusing primarily on economic growth and potential rate cuts, investors are now watching whether the oil shock creates a second wave of inflation.

Treasury Yields Add to Market Volatility

The pressure is not limited to commodities.

The U.S. 10-year Treasury yield moved close to the psychologically important 5% level, while global bond markets also experienced significant selling pressure. Higher yields increase borrowing costs for governments, companies and households and can place additional pressure on equity valuations.

If oil prices remain elevated for an extended period, central banks could face a difficult policy trade-off between controlling inflation and protecting economic growth.

What Comes Next for Global Markets?

Trump’s latest comments suggest that Washington remains committed to economic and military pressure on Tehran, at least for now. However, the longer the conflict continues, the greater the risk that energy disruption becomes embedded in global inflation expectations.

Markets will therefore remain highly sensitive to developments around Iran, the Strait of Hormuz and other major energy routes.

For investors, the key question is no longer simply whether oil can remain above $100. It is whether elevated energy prices can persist long enough to change central-bank policy, bond yields, currency markets and global economic growth.

With Trump ruling out regret over the war and continuing to emphasize economic pressure on Iran, geopolitical developments are likely to remain a major driver of financial markets through the U.S. midterm election period.