* Trump says escalation by Kyiv could help lead to war's end

* Kremlin calls that a misconception

* Russia says attacks create need for deeper 'security zone'

(Adds Kremlin comment in paragraphs 1, 4-6 and 9-10, adds Rubio

in paragraph 2, Trump in paragraph 3 and sources in paragraphs

7-8)

MOSCOW, July 9 (Reuters) - Russia said on Thursday the

United States was wrong to believe deep Ukrainian strikes into

Russian territory could help bring about an end to more than

four years of war, and warned that they could prolong it.

Speaking at a NATO summit in Turkey on Wednesday, U.S.

Secretary of State Marco Rubio said Russia was finding it harder

to defend its own skies, adding that this would hopefully create

more space to negotiate an end to the war.

U.S. President Donald Trump said: "It's an escalation, but

it's also an escalation that can help lead to an end."

Asked about their statements, Kremlin spokesman Dmitry

Peskov told reporters there were "certain misconceptions within

the White House administration... regarding the idea that

escalation and military pressure can help pave the way for a

peaceful settlement."

He said this was a flawed premise, adding that what Russia

calls its "special military operation" in Ukraine might go on

for longer as a result.

"It will result in our having to establish a larger security

zone - a larger buffer zone," Peskov said. "Consequently,

stoking tensions and taking actions that drive escalation will

in no way contribute to the peace process."

PUTIN'S POSITION

Three sources close to the Kremlin have told Reuters that

President Vladimir Putin is rejecting calls to negotiate peace

with Kyiv, and that Ukraine's recent drone strikes on Russia's

oil refineries and ports have strengthened his resolve to keep

fighting for now.

Two of the sources said Putin was instead likely to escalate

the conflict. One of them, who meets regularly with the

president, described a "high probability" of escalation in the

coming months.

Asked about Trump's decision to allow Ukraine to make

Patriot air defence interceptors under licence, Peskov said

Moscow was under no illusion about U.S. weapons supplies to

Kyiv.

"We do not view the situation through rose-tinted glasses,

and President Putin is fully aware of this. At the same time,

there is a certain duality in the U.S. position: unlike the

Europeans, the United States maintains a desire to facilitate a

move toward a peace process. They may be mistaken or wrong at

times, but that desire strikes us as sincere."

Trump's efforts to end the conflict in Ukraine have stalled

in recent months as Washington has focused on the war with Iran,

but Peskov reiterated that the Kremlin hoped U.S. mediation

would resume once the Middle East crisis was resolved.