Israel's Netanyahu chooses military strikes over Iranian oil targets
- Netanyahu communicated with Biden about targeting military infrastructure in Iran instead of oil or nuclear sites.
- This decision was influenced by a recent ballistic missile attack on Israel and concerns over U.S. political implications.
- The market reacted positively, with crude oil prices dropping as geopolitical tensions appeared to ease.
In October 2024, Israeli Prime Minister Benjamin Netanyahu communicated with U.S. President Joe Biden regarding Israel's military strategy towards Iran. Netanyahu indicated a willingness to target military infrastructure in Iran, avoiding strikes on oil facilities or nuclear sites, as per Biden's request. This decision was influenced by concerns over the potential impact on U.S. elections and rising oil prices. The discussions followed a significant ballistic missile attack on Israel, which heightened tensions in the region. The U.S. administration's support for Israel's defense included plans to send a Terminal High-Altitude Area Defense (THAAD) battery, which may have encouraged Netanyahu's more restrained approach. The market reacted to these developments, with crude oil prices dropping sharply as fears of escalating conflict diminished. Analysts noted that the geopolitical risk premium on oil was tapering, reflecting a temporary easing of tensions in the Middle East, a region critical to global oil supply.