President Donald Trump said Thursday he is nearing a decision on dramatically expanding U.S. military operations against Iran as oil prices climbed to their highest level in nearly two months and Tehran-backed Houthi rebels launched fresh attacks in the Red Sea.

“I am considering a massive attack. Bigger than ever before,” Trump told Axios. “I am close to making a decision. We are all set for it.”

Trump also said Iran remains interested in negotiating but argued the regime has not yet suffered “enough pain” to come to the table on acceptable terms.

The president did not indicate when he expects to make a final decision.

The latest comments come as the conflict with Iran intensifies following the collapse of the fragile ceasefire between Washington and Tehran.

Oil prices surged above $100 per barrel Thursday for the first time since May 26 as fears of a wider regional conflict rattled global energy markets.

POLL: Do You Approve Of Secretary Of War Pete Hegseth?

The U.S. military has now carried out strikes against Iran for 12 consecutive nights while continuing to reinforce its presence across the region. A B-1 bomber was used in combat for the first time since hostilities resumed, additional special operations forces have been deployed, and another 150 medical personnel have been sent to a U.S. military hospital in Germany that treats troops wounded in the Middle East.

Meanwhile, Iran-backed Houthi rebels in Yemen claimed responsibility for two attacks Wednesday night targeting Saudi oil tankers in the Red Sea, raising new concerns about global energy supplies.

Analysts have warned the attacks could threaten Saudi Arabia’s key export route through the Red Sea, adding further pressure to already volatile oil markets.

The growing conflict is also creating political headaches in Washington. Republicans defending narrow congressional majorities are increasingly concerned that higher gasoline prices and a prolonged war with Iran could give Democrats a powerful campaign issue heading into the midterm elections.

POLL: Should Foreigners Be Banned From Buying American Farmland?