The Tamesis
Crude prices fell on Friday after Israeli Prime Minister Benjamin Netanyahu said Iran was “taking a beating” and that the war would end sooner than many feared.
Traders also welcomed comments from U.S. President Donald Trump that Israeli forces would no longer target Tehran’s energy infrastructure, after an attack on a key gas field on Wednesday prompted warnings of retaliation against facilities in the Gulf region.
But as the conflict entered its fourth week, Asian markets mostly fell as investors worried about the energy impact, as oil remained around $100 a barrel and natural gas prices soared amid a virtual closure of the crucial Strait of Hormuz.
See also: India races to secure supplies as new attacks threaten ‘energy war’
Netanyahu told a news conference on Thursday that Israel and the United States “are winning, while Iran is getting hammered,” adding that the Islamic republic no longer has the ability to enrich uranium or build ballistic missiles.
“This war is ending much faster than people think,” he said, without providing a specific timetable.
Netanyahu also said he would help U.S. efforts to secure the Strait of Hormuz, through which a fifth of the world’s oil and gas flows.
His comments came after Washington said there was no deadline for the war it launched against Iran on February 28 to end.
Both major oil contracts fell on Friday, but pared their losses as the session wore on. Brent crude oil prices remained around $108 and West Texas Intermediate crude oil prices remained around $94.
Iran warnings, threats
Crude oil prices had surged to $119 before Netanyahu’s comments. Tehran has attacked multiple energy sites around the Gulf in retaliation for Israel’s attack on its South Pars oil fields.
Asked if he had discussed attacking Iran’s natural gas fields with the prime minister, Trump responded: “I did. I told him, don’t do that, he wouldn’t do that.”
“You know, we’re independent. We get along great. It’s coordinated, but sometimes, he’ll do something and if I don’t like it…so we don’t do it anymore.”
he has Earlier warned Iran that the US military would “massively blow up” the South Pars oil field If Tehran does not stop attacking Qatar, Iran said it would exercise “zero restraint” if its energy infrastructure was attacked again.
Meanwhile, French President Emmanuel Macron said France plans to discuss with the permanent members of the United Nations Security Council the establishment of a United Nations framework to ensure navigation in the Strait of Hormuz once the ongoing fighting ends.
The strike continues
But as Gulf states faced new attacks, Israel launched a wave of attacks on Tehran on Friday, signaling the conflict was unlikely to end soon, while Iran continued to target neighboring countries, with an oil refinery in Kuwait set ablaze after a drone strike.
The United States and Israel also attacked 16 Iranian cargo ships in Gulf port towns on Friday, local media reported, saying the vessels were burned.
Later, the Iranian military threatened to hunt down U.S. and Israeli officials and military commanders even if they were on vacation or visiting entertainment centers.
“We are monitoring your cowardly officers and commanders, pilots and evil soldiers,” state television quoted armed forces spokesman Abolfazl Shikarchi as saying.
“From now on, based on the information we have about you, the world’s promenades, resorts and tourism and entertainment centers will no longer be safe for you either.”
Asian stocks mostly lower
Most Asian stock markets fell on Friday as nervous traders awaited positive developments in the crisis.
Hong Kong, Shanghai, Sydney, Singapore, Taipei and Wellington all fell, but Seoul, Mumbai and Bangkok rose. Tokyo is closed for a holiday.
London, Paris and Frankfurt opened higher.
Stephen Innes of SPI Asset Management wrote: “Netanyahu’s comments injected a layer of comfort into the mood, as he talked about securing the strait and claimed that Iran’s nuclear and missile capabilities had been neutralized, raising the prospect that the conflict might end sooner than feared.”
“This narrative is important because it shortens the perceived longevity of supply shocks. But even if the geopolitical chapter ends sooner than expected, the energy system will not reset on command.
“You can’t rebuild liquefaction trains, repair export terminals or restore confidence in global shipping routes with a press conference.”
China has urged all parties to end the war with Iran, warning on Friday of the impact it would have on global energy, shipping and trade.
Foreign Ministry spokesperson Lin Jian said that history and reality have repeatedly shown the world that force is not the solution to problems, and armed conflict will only breed new hatred.
Fuel impacts across Southeast Asia
The oil tanker blockade in the Gulf and Strait of Hormuz has shocked countries in the Asia-Pacific region.
In Southeast Asia, governments face panic buying and shortages of imported fuel. That means shortages of gas for cooking and soaring prices for diesel and gasoline.
In Vietnam, the cost of gasoline rose more than 20% on Friday after the government announced it would increase the price of 95-octane gasoline to 30,690 dong ($1.20) per liter and diesel prices rose nearly 34% to 33,420 dong.
According to reports, Vietnamese Prime Minister Pham Minh Zheng has made a phone call requesting countries such as Qatar, Kuwait, Algeria and Japan to provide fuel support.
Aviation authorities have warned that domestic flights could be reduced due to potential fuel shortages. But state media quoted officials as saying the country could ensure enough oil and gas for domestic consumption by the end of April.
Neighboring Laos on Thursday ordered all schools across the country to shorten classes to three days a week starting next week, as fuel shortages and rising prices disrupt transportation and daily life in the landlocked country.
In Myanmar, gas station prices increased by about 30% from Thursday to Friday. AFP reporters saw long queues at a gas station near Mandalay as motorists rushed to fill up.
Fuel prices have also risen in Thailand this week, with the new government announcing an increase in diesel rates on Wednesday.
- AFP Additional input and editing by Jim Pollard
See also:
Asian shares fall after oil prices surge 5% and energy worries mount
Japan may jointly develop recently discovered deep-sea rare earths with the United States
Iran war sends gas prices soaring, Asia ramps up coal power generation
Oil crisis: US allows Iranian tankers to pass through Strait of Hormuz
Top Chinese cobalt mine causing illness, death in Democratic Republic of Congo, report says
Iran threatens to ‘destroy world economy’ as more ships attacked
Iran says three ships attacked, ready for $200 a barrel price
China ‘weaponizes bottlenecks’ by restricting exports of key rare earths
India delays talks, China says ‘cancel tariffs’ after US ruling
