Global Oil Prices Weaken Due to Netanyahu's Speech, Here's Why

Jakarta - Global crude oil prices weakened during Friday’s trading (20/3/2026) after Israeli Prime Minister Benjamin Netanyahu stated that Iran is being “destroyed” and the war is expected to end more quickly than market concerns. According to an AFP report, the statement alleviated some investor worries about disruptions to global energy supplies. Market participants also welcomed US President Donald Trump’s remarks that Israeli forces would no longer target Tehran’s energy infrastructure. This stance came after attacks on a major gas field on Wednesday triggered threats of retaliation against energy facilities in the Gulf region. Nevertheless, the conflict, now in its fourth week, has led to a general weakening of global stock markets due to lingering concerns in the energy sector. Oil prices remained around US$100 per barrel, while gas prices surged amid the effective closure of the Strait of Hormuz, a vital route for global oil and gas distribution. In a press conference, Netanyahu affirmed that Israel and the United States hold the upper hand, stating that Iran no longer has the capacity to enrich uranium or produce ballistic missiles. He also indicated that the war would end far sooner than anticipated, without providing a specific timeline. Furthermore, Netanyahu said Israel would assist the United States in securing the Strait of Hormuz, through which about one-fifth of global oil and gas flows. This statement followed Washington’s confirmation that no deadline has been set for ending the war that began on 28 February. Major global oil contracts fell on Friday, although they trimmed losses towards the end of trading. Brent crude held around US$108 per barrel, while West Texas Intermediate (WTI) was around US$94 per barrel. Before Netanyahu’s statement, oil prices had surged to US$119 per barrel after Tehran attacked several energy facilities in the Gulf region. The attacks were in retaliation for Israel’s actions against Iran’s South Pars gas field. Trump revealed that he had asked Netanyahu not to attack Iran’s gas fields and ensured such actions would not continue. He also warned Tehran that US forces would destroy the South Pars facility if attacks on Qatar were not halted, prompting Iran to issue unlimited threats if its infrastructure is targeted again.