As oil edges higher, Trump floats letting Iran 'wither,' possibility of protracted war grows

President Trump, for the second day in a row, telegraphed an escalation in Iran after the midterm elections and an extended standoff, with the Strait of Hormuz still at the center of the conflict.

"The question is: Do we want to finish it off or do we just want to let it wither because we're getting everything we wanted," the president told reporters on Friday morning as he touted evidence of Middle East oil exports surpassing prewar levels.

The comments also came after Trump's ambassador to the UN told the Financial Times that the war could last another year and that the US is prepared for a long-term standoff, but that he hoped negotiations would end the conflict sooner.

US Ambassador Mike Waltz told the outlet that the US "can maintain [its] blockade for the foreseeable future."

The Trump administration will push for negotiations to end things more quickly, Waltz said, and he hoped the Iranians would "come to the table in a meaningful way before that." Major nuclear concessions, he said, are needed for peace.

Meanwhile, Trump on Thursday seemed to confirm reports that a new wave of strikes could be planned for after the election, saying, "We've knocked the hell out of them and we may do it a little bit further."

There is also growing evidence that the US Navy has helped ease some oil supply pressures.

A story from the Wall Street Journal based on data from shipping tracker Kpler — which Trump has touted repeatedly in recent days — found that Persian Gulf oil exports have now surpassed prewar levels through a combination of shipping routes and alternatives across the region, such as pipelines.

But the story also noted that oil traders are concerned the latest uptick might not be sustainable if fighting breaks out again.

Yet new fighting is what Trump has suggested for multiple days.

"We could, if we wanted to, just take all of the oil. We could take the whole country," he said Friday, claiming the Strait of Hormuz is "totally ours."

"We have done a hell of a job," the president said of the US Navy's blockade that has protected many oil exports, in spite of Iranian attacks, and also appears to have prevented Iran from exporting its own oil.

Global crude oil prices, meanwhile, remained elevated Friday, with futures for international benchmark Brent crude ( BZ=F ) above $110 per barrel and for US benchmark West Texas Intermediate ( CL=F ) above $100.

Ben Werschkul is a Washington correspondent for Yahoo Finance.