President Donald Trump declared Friday that the United States is considering "winding down" military efforts in the Middle East, even as additional Marine forces are deployed to the Persian Gulf region. The USS Boxer group carrying thousands of Marines from the 11th Marine Expeditionary Unit has departed California and is expected to reach the Persian Gulf within three weeks, according to NPR reports. This development comes as the conflict with Iran continues to intensify, with preliminary casualty figures showing 1,444 dead in Iran, at least 18 in Israel, 13 US soldiers, and 21 killed in Gulf states.
In a significant diplomatic move, the US Treasury Department lifted sanctions on approximately 140 million barrels of Iranian oil, marking a potential shift in economic warfare strategy. However, the conflict continues to escalate with Israel conducting strikes on Tehran while Iranians mark the Nowruz holiday. Iran has claimed a major military victory, asserting they successfully struck a US F-35 Lightning II fighter jet, which would represent the world's first hit on the advanced stealth aircraft if confirmed. The Iranian military also targeted Qatar's Ras Laffan facility, reportedly eliminating 17% of Qatar's LNG capacity and causing an estimated $20 billion in damages.
Global financial markets responded negatively to the ongoing uncertainty, with US stocks posting their fourth consecutive weekly decline. The S&P 500 dropped 0.5% in morning trading, the Dow Jones Industrial Average fell 126 points, and the Nasdaq Composite slipped 0.8%. Rising Treasury yields continue to pressure market valuations, with the 10-year US Treasury yield climbing to 4.32% from approximately 3.97% before the Iran conflict began. Traders have abandoned expectations for multiple interest rate cuts this year and are even pricing in a small probability of rate hikes in 2026.
Oil prices remained volatile but showed some stabilization, with Brent crude dipping 0.3% to $108.29 per barrel while US benchmark crude stayed flat at $95.53. The energy markets continue to react to potential disruptions through the Strait of Hormuz, which handles roughly one-fifth of global crude flows. Investors are closely monitoring the duration and economic impact of the West Asian conflict as geopolitical tensions reshape global trade patterns and supply chains in this rapidly evolving situation.