Netanyahu Assures War Will End Soon, Leading to Drop in Crude Oil Prices
News Summary
Reviewed from an editorial perspective.
- Israeli Prime Minister Benjamin Netanyahu has assured that the war with Iran will end sooner than many expect.
- Netanyahu stated, ‘The Islamic Republic lacks the capability to enrich uranium or produce ballistic missiles.’
- U.S. President Donald Trump expressed preference that Israeli forces avoid targeting Tehran’s energy infrastructure.
March 21, Kathmandu – Israeli Prime Minister Benjamin Netanyahu has expressed confidence that the ongoing war against Iran will conclude earlier than most anticipate. Following Netanyahu’s remarks, crude oil prices fell on Friday.
Traders have also welcomed statements from U.S. President Donald Trump. After attacks on Qatar’s main gas field in the Gulf on Wednesday, Iran warned of retaliatory strikes against fuel processing facilities in the Gulf region. Subsequently, President Trump indicated that Israeli forces would not target Tehran’s energy infrastructure.
As the conflict enters its fourth week, investors are showing concern regarding the energy market, and interest from new investors in Gulf energy centers has declined. Although oil prices have stabilized around $100 per barrel, the effective blockade of the Strait of Hormuz—a critical route for global supply—has caused gas prices to surge significantly.
Claiming victory over Iran, Israeli and U.S. officials have said the Islamic Republic lacks the capability to enrich uranium or manufacture ballistic missiles, Netanyahu declared, “This war is ending much faster than people think,” without providing a precise timeline. He added, “Israel will assist the United States in securing the Strait of Hormuz, where one-fifth of the world’s oil and gas flow through.”
This statement contrasts with Washington’s position, which has not set any firm timeline for ending the war that began on February 28.
Before Netanyahu’s comments, crude oil prices had surged to $119 per barrel following Iran’s retaliation against Israeli attacks in its South Pars region and strikes on various energy sites across the Gulf.
When asked if he had discussed the gas field attack with the Prime Minister, President Trump responded, “I have talked to them. I asked Israeli officials not to target fuel production and processing sites, and they have agreed not to.”
He had already warned Iran: “If Tehran does not stop attacking Qatar, U.S. forces will conduct extensive strikes in South Pars.”
Meanwhile, French President Emmanuel Macron announced plans for his country to establish a framework with the permanent members of the United Nations Security Council.
As the Gulf nations endure ongoing conflict without an immediate prospect for peace, Israel initiated a wave of attacks on Tehran on Friday, while Iran targeted neighboring countries by conducting drone strikes on oil processing centers in Kuwait.
Stephen Innes of SPI Asset Management commented, “Netanyahu’s remarks have added a reassuring balm to tensions, reinforcing the belief that the conflict will soon end through assurances of Strait security and neutralizing Iran’s nuclear and missile capabilities.”
– From RASAS