President Joe Biden sent shockwaves through the global markets on Thursday with his comments on possible Israeli strikes against Iranian oil facilities. The remarks, made just a month before the US presidential election, sparked an immediate 5% surge in oil prices, fueled by growing concerns about escalating tensions in the Middle East.
While speaking to reporters at the White House, Biden initially stated that he does not expect Israel to retaliate against Iran’s recent missile barrage before Thursday. However, when asked if he would support Israel targeting Iranian oil facilities, Biden’s response was ambiguous: “We’re discussing that. I think that would be a little… anyway.”
The president’s hesitant words and the potential for further conflict sent ripples through the market. A spike in oil prices could significantly impact Biden’s Vice President Kamala Harris as she faces former President Donald Trump in the November 5 election, where the cost of living is a major campaign issue.
Despite acknowledging discussions with Israel, Biden maintained that he does not expect immediate action from Israel, even though Israeli Prime Minister Benjamin Netanyahu has recently shown little inclination for restraint in his targeting of the Iran-allied Hezbollah militia in Lebanon.
Earlier this week, Biden had stated that he would not support an Israeli attack on Iranian nuclear sites. However, he reiterated that Israel has “a right to respond” to Iranian aggression, emphasizing the need for a “proportional” response.
In response to Tuesday’s Iranian missile barrage, which saw approximately 200 rockets launched into Israel, Netanyahu warned of repercussions. Iran claimed the attack was retaliation for the killing of Hassan Nasrallah, the leader of Hezbollah. These attacks followed a series of rocket launches by Hezbollah at Israel since the October 7, 2023, attacks by Iran’s Palestinian ally Hamas on Israel and Israel’s subsequent offensive in Gaza.
Biden’s comments further complicate the already tense situation in the Middle East. He announced plans to impose additional sanctions on Iran and revealed that he will be speaking with Netanyahu “relatively soon” to discuss the situation. The potential for further conflict and instability hangs heavy in the air as the world watches with bated breath.
