Biden Discourages Israel From Attacking Iran's Oil Fields

President Joe Biden sought to discourage Israel from attacking Iran’s oil fields, as the US looks to shape Prime Minister Benjamin Netanyahu’s response to a ballistic-missile barrage and keep the region from descending into all-out war.

(Bloomberg) — President Joe Biden sought to discourage Israel from attacking Iran’s oil fields, as the US looks to shape Prime Minister Benjamin Netanyahu’s response to a ballistic-missile barrage and keep the region from descending into all-out war. 

Biden, addressing reporters at the White House, acknowledged that Israel would respond in some fashion, as Netanyahu vowed to do soon after Iran fired about 200 missiles at Israeli targets on Tuesday. But he’s also sought to keep Netanyahu from going too far, saying Israel shouldn’t strike Iran’s nuclear facilities either.

“The Israelis have not concluded what they’re going to do in terms of a strike,” Biden said, adding that he didn’t know when a strike might come. “If I were in their shoes, I’d be thinking about other alternatives than striking oil fields.”

The comment was an acknowledgment that an Israeli attack on major oil infrastructure would be considered a significant escalation that would likely roil energy markets amid concerns supply might be choked off, especially to China. 

Biden got a sense for just how sensitive the markets have become a day before, when oil jumped by 5% off comments in which he said the US was “discussing” possible Israeli strikes on energy facilities.

Biden said he was consulting with Prime Minister Benjamin Netanyahu’s government as it decides how to respond to Tuesday’s attack, which saw Iran launch some 200 ballistic missiles at targets across the country. While some of the missiles got through Israel’s defenses, there was little damage. Netanyahu has warned Israel has no choice but to retaliate, and an attack could come at any time.

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The US and other Group of Seven nations are weighing sanctions on Iran, which is already under smothering financial restrictions. Asked if the US was considering fresh sanctions on Iran’s oil sector, Biden said “that’s under consideration right now — the whole thing.”

Biden sidestepped a question on whether the looming US presidential election was potentially impacting Israel’s decision-making — or whether Netanyahu was attempting to influence the outcome of the US contest. Netanyahu had a warm relationship with former President Donald Trump, running again as the Republican presidential nominee, and some experts have suggested the Israeli leader is waiting to see who wins the presidency next month before considering a cease-fire.

“Whether he’s trying to influence election or I don’t know, but I’m not counting on that,” Biden said, adding that “no administration has helped Israel more than I have.”

(Updates with details of Biden comments.)