Oil prices surged by five per cent on Thursday following remarks by US President Joe Biden, who revealed discussions around the possibility of Israeli strikes on Iran’s oil infrastructure. The announcement comes just weeks before the US presidential election, where soaring living costs remain a critical issue for voters.
Speaking at the White House, Biden addressed the escalating tensions between Israel and Iran, downplaying the likelihood of immediate retaliatory action by Israel in response to Tehran’s missile barrage. “We’re discussing that,” Biden said when asked whether he supported Israeli strikes on Iran’s oil facilities, before adding, “I think that would be a little… anyway.”
Iran’s missile attack, involving the launch of 200 rockets at Israel on Tuesday, came as retaliation for the killing of Hezbollah leader Hassan Nasrallah. Israeli Prime Minister Benjamin Netanyahu, already engaged in a fierce offensive against Hezbollah forces in Lebanon, has vowed to make Tehran pay. However, Biden said on Wednesday that he would not endorse Israeli action against Iran’s nuclear sites.
Despite the heated rhetoric, Biden reassured reporters that no Israeli military response was expected on Thursday. “First of all, we don’t ‘allow’ Israel, we advise Israel,” Biden said. “And there is nothing going to happen today.”
With the November 5 election looming, the spike in oil prices threatens to deepen economic challenges for Biden’s Vice President Kamala Harris, who is facing Republican contender Donald Trump in a contest where the cost of living has emerged as a pivotal issue.
Since the Hamas attacks on Israel on October 7, Hezbollah has stepped up its rocket assaults from Lebanon, exacerbating an already volatile situation. Israel’s retaliatory campaign in Gaza has claimed more than 41,000 lives, further fuelling the conflict that now threatens broader regional stability.
