The Trump administration has warned it would be “very wise” for Iran to make a deal, amid reports the White House is considering fresh military action against Tehran as soon as this weekend.

It comes shortly after Vice President JD Vance accused Iran of failing to address core U.S. demands during nuclear talks in Switzerland this week. Iran’s foreign minister previously reported progress in the talks, saying the two countries had reached an understanding over the “guiding principles” for the negotiations.

Speaking at a news briefing Wednesday, White House Press Secretary Karoline Leavitt said there were “many reasons and arguments that once could make for a strike against Iran,” noting that the two countries remain “very far apart” on some issues.

The U.S. president had a “very successful” operation last June, Leavitt said, when U.S. stealth bombers struck three Iranian nuclear facilities as part of “Operation Midnight Hammer.”

“The president has always been very clear though with respect to Iran or any country around the world, diplomacy is always his first option. And Iran would be very wise to make a deal with President Trump and this administration,” Leavitt said.

The White House has said it still hopes to reach a diplomatic resolution over Tehran’s nuclear program, although U.S. media has reported that the military could be prepared to strike Iran as early as the weekend.

The U.S., for its part, has built up a significant presence of air and naval assets, while Iran has conducted military drills in the strategically vital Strait of Hormuz and announced joint naval drills with Russia in the Sea of Oman.

Laura James, Middle East senior analyst at Oxford Analytica, described the current situation as “extremely dangerous,” with the U.S. and Iran “certainly closer” to an outright conflict than last week.

“The thing that is now a particular concern over the past 24 hours is the very rapid pace at which the United States is reinforcing its air power in the region. That, of course, can still be signalling and pressure for a particular diplomatic outcome,” James told CNBC’s “Access Middle East” on Thursday.

“But as more and more planes comes in and more and more equipment comes in, that signalling gets more and more expensive. And therefore, the payoff you want for it in diplomatic terms has to be larger — and there is simply no sign Tehran can offer the absolute minimum that Washington is likely to demand,” she added.

Oil prices

Energy market participants have been closely watching the outcome of the U.S.-Iran talks in Geneva, particularly as it relates to the Strait of Hormuz, a major international waterway that Iran partially closed on Tuesday citing “security precautions.”

Located in the gulf between Oman and Iran, the Strait of Hormuz is recognized as one of the world’s most important oil choke points.

About 13 million barrels per day of crude oil transited the Strait of Hormuz in 2025, accounting for roughly 31% of global seaborne crude flows, data provided by market intelligence firm Kpler showed.

Oil prices were higher on Thursday, extending gains after settling up more than 4% in the previous session.

International benchmark Brent crude futures with April delivery rose 1.5% to $71.41 per barrel, while U.S. West Texas Intermediate futures with March delivery stood 1.7% higher at $66.27.

— CNBC’s Lee Ying Shan contributed to this report.

Many European policymakers appear to still be smarting from U.S. Vice President JD Vance’s tough words about the region at last year’s Munich Security Conference.

So, it’s perhaps not too surprising that U.S. Secretary of State Marco Rubio’s comments on Saturday at this year’s event underscoring the U.S. and Europe’s common heritage, goals and challenges have come as something of a relief in European capitals.

“[Rubio] delivered a speech which still assured us that we stand together in this partnership between Europe and the United States,” German Foreign Minister Johann Wadephul told CNBC in an interview on the sidelines of the conference. “Of course, there are some questions which we will have to discuss, but in the end of the day, his message was clear that we were so successful in the past, and we should do the job once again with new threats, with new tests in the 21st century.”

On Saturday, Rubio said the U.S. has no intention of abandoning its deep alliance with Europe and wants the region to succeed.

“We want Europe to be strong,” he told the gathering of defense and security officials in the German city. “We believe that Europe must survive, because the two great wars of the last century serve, for us, as history’s great reminder, that ultimately, our destiny is, and will always be, intertwined with yours.”

Contrast that to Vance’s message to the same crowd last year, when he spoke of the “retreat of Europe from some of its most fundamental values, values shared with the United States of America.” He lambasted his audience about the health of their democracies, their migration policies and freedom of speech.

While Rubio’s tone might have been more conciliatory than Vance’s, the underlying issues remained the same, as some conference attendees acknowledged.

“Of course, there were some issues he raised. We would answer differently when it comes to the migration problem, when it comes, of course, to question how we organize our legal framework here in Europe with regard to the digital services. And of course, also with the question of freedom of speech and so,” Wadephul said.

U.S. President Donald Trump has frequently criticized Europe for its open migration policies, for being too reliant on the U.S. for its security and has pushed NATO allies to boost defense spending. His pursuit of ownership of Greenland, a Danish territory, has also rattled European leaders in recent months.

“The message we heard (from Rubio) is that America and Europe are intertwined, they have been in the past and will be in the future,” the EU’s chief diplomat, Kaja Kallas, said at a panel discussion on Sunday. “I think this is important. It is also clear that we don’t see eye-to-eye in all the issues and that this will remain the case. But I think we can work from there.”