President Joe Biden said the United States is discussing potential Israeli strikes on Iran’s oil facilities. Soon after his comments, oil markets reacted, with crude oil prices spiking 5%, the largest one-day increase since the start of the Israel-Hamas war.
Biden made these remarks in response to a reporter’s question outside the White House on Thursday, Oct. 3, asking if he would support Israel striking Iran’s oil facilities.
“We’re in discussions about that,” Biden said. “I think that would be a little… anyway…”
While Biden suggested Iran’s oil facilities could become potential targets, he reiterated on Wednesday, Oct. 2, that he opposes any strikes on Iran’s nuclear sites.
Iran reacted to the possibility of retaliatory strikes with a warning from its mission at the United Nations on Thursday. The country cautioned that any nation assisting Israel would be deemed “an accomplice” and a “legitimate target,” advising the U.S. and others to stay out of the conflict.
“Should any country render assistance to the aggressor, it shall likewise be deemed an accomplice and a legitimate target,” Iran’s mission said. “We advise countries to refrain from entangling themselves in the conflict between the Israeli regime and Iran and to distance themselves from the fray.”
The swift reaction from oil markets on Thursday indicated that investors are on edge, considering the implications of a broader conflict, particularly the potential disruption to the Straits of Hormuz, one of the world’s most crucial maritime passages for oil and liquefied natural gas.
The situation escalated earlier this week when Iran launched around 180 ballistic missiles at Israel, calling it retaliation for the deaths of Hamas and Hezbollah leaders. In response, Israeli Prime Minister Benjamin Netanyahu vowed that Iran “will pay a heavy price” for its actions.
