I assume that threat is on the table at this point. If we blow our whole wad at once, we won't be able to ratchet up the pressure each time we need to. Between letting Netanyahu's political rivals meet with the US government and the VP speaking up now, too. The pattern of incremental pressure is pretty apparent. We don't want to end up in a situation where we have no leverage left and the war continues.
Meanwhile, Trump is saying Israel should "finish the job" in Gaza.