As the US-Iran conflict enters its third week, public calls for de-escalation are emerging within the Trump administration, revealing growing fractures among allies. David Sacks, a White House advisor to Trump overseeing AI and cryptocurrency, publicly advocated on his latest podcast for the US to "declare victory and withdraw" from the Iran conflict, becoming the first senior official within the administration to voice dissent openly. Sacks stated clearly that such a move is "obviously what the market wants to see."
Concurrently, media reports indicate that skeptical Trump allies have been coordinating behind the scenes to arrange appearances on Fox News and other channels the president watches, sending cautious signals and warning against deeper US military entanglements.
On the 13th, US President Trump claimed on social media that Iran had been "totally defeated," accusing "fake news" media of ignoring military successes and stating Iran wanted a deal—which he would not accept.
The market impact is now undeniable. Iran's blockade of the Strait of Hormuz has triggered soaring oil prices and global energy shocks, prompting the largest-ever release of strategic petroleum reserves. Simultaneously, stock markets have plunged, with repeated warnings of stagflation risks as the US economy faces dual pressures of stagnation and high inflation.
Advisor's Public Appeal: Markets Need an Exit David Sacks made his direct appeal on the "All-In" podcast he co-hosts, stating, "Now is a good time to declare victory and get out," and emphasizing this is "obviously what the market wants to see."
Sacks' comments followed Trump's assertion this month that the US could fight Iran "forever," which caused significant backlash within his MAGA base—a constituency that partly supported him for his promise to end foreign wars. Trump later told reporters the war might end "soon," but on Friday announced US forces had "destroyed every military target on Karg Island."
Sacks expressed specific concerns about further strikes on Iranian energy infrastructure, even mentioning nuclear war risks. He warned that attacking more energy facilities could provoke Iranian strikes on Gulf oil and gas infrastructure, leading to a "much worse outcome." He highlighted Saudi Arabia specifically, stating further escalation could render the Gulf region "almost uninhabitable," a "truly catastrophic scenario."
Known Risks Before the War Before the conflict began, Chairman of the Joint Chiefs of Staff General Dan Caine reportedly briefed Trump multiple times that US strikes could prompt Iran to blockade the Strait of Hormuz—a long-assessed Iranian tactic using mines, drones, and missiles. Trump acknowledged the risk but proceeded, believing Tehran would likely capitulate before a blockade, and that US forces could handle any attempt.
After two weeks, however, Iranian leadership has refused to back down. Iran has intercepted tankers and attacked cargo ships, leveraging the Strait as its most powerful bargaining chip. White House Press Secretary Karoline Leavitt stated the Pentagon has prepared for decades for a Strait blockade scenario, and the operation was "literally designed to deprive Iran of the ability to blockade the Strait."
Following a briefing, Democratic Senator Chris Murphy expressed astonishment, stating, "They have no plan for a Strait crisis. These people had no plan before the war, and still no plan a week into it, which is quite shocking."
Private Ally Anger, Mounting Market Pressure Gulf allies have privately expressed strong dissatisfaction with the US, with diplomats reporting accusations that the Trump administration started a war endangering their nations and damaging the region's prosperous, business-friendly image. Trump has privately called these leaders this week.
Oil volatility and market turmoil have triggered the historic oil reserve release while angering oil companies seeking price stability. The White House has launched a new messaging strategy emphasizing a swift post-objective conflict end, aimed at calming markets.
However, US officials privately indicate no current withdrawal plans exist, with more Marines and ships heading to the region. Some officials expect fighting to continue for weeks or longer.
A retired US officer stated on the 13th that attacks on Iran's Kharg Island have escalated war risks and could ultimately lead to "out-of-control" oil prices.
Analysts note Trump faces a dilemma: end hostilities leaving a damaged regime able to rearm, or continue bombing risking broader instability, more casualties, and political backlash. Another option, officials reveal, is for Trump to simply declare victory and stop.
A veteran Wall Street macro strategist explicitly opposes the "declare victory and withdraw" path, arguing it is worse than maintaining current operations. The reasoning points to structural risks: a US withdrawal without resolving the Strait issue would grant Iran lasting control over a global energy artery, enabling long-term economic punishment via potential $200/barrel oil.