US President Donald Trump outlined the "choices" in a tweet (Picture: PA).
The US president has said he faces "three choices" following the Turkish attack on Kurdish fighters in northern Syria, as the US State Department claims the administration is working to get a mediation process started.
Donald Trump tweeted that he could intervene militarily, threaten sanctions or lead a mediation effort between Turkey and the Kurds - later telling journalists that he preferred the last option.
The Turkish military has announced its first fatality since the cross-border offensive began on Wednesday, also claiming that 277 Kurdish "terrorists" were "neutralised".
The Turkish attacks have almost immediately followed Mr Trump's decision to withdraw US troops from north-eastern Syria.
Mr Trump wrote: "We have one of three choices: Send in thousands of troops and win Militarily, hit Turkey very hard Financially and with Sanctions, or mediate a deal between Turkey and the Kurds!"
The US State Department claims the administration is working to get a mediation process started, Mr Trump later announced that he favours trying to secure a deal.
Mr Trump began the statement by writing that the US had done its job "perfectly" in the area being attacked, claiming victory over so-called Islamic State: "We defeated 100% of the ISIS Caliphate and no longer have any troops in the area under attack by Turkey, in Syria. We did our job perfectly!"
This comes after a former US General warned that US evacuation from the immediate area could leave the Kurdish forces left behind to face a resurgent IS presence.
General David Petraeus, who commanded forces in Iraq and Afghanistan, said the move raises concerns about America's "level of commitment" to partners and allies.
With regard to hitting Turkey "very hard" with financial sanctions, Trump had previously threatened to "obliterate" the NATO member nation's economy if it acted in a way considered by the US as inhumane.
There have been civilian casualties on both sides, with reports that six civilians in Turkey and seven in Syria have now died.