Energy prices ease as Israel looks to rule out lengthy war

20th Mar 2026 09:05

(Sharecast News) - Energy prices eased off recent highs on Friday, after Israel insisted the war with Iran would end faster than expected.

Oil and gas prices soared on Thursday following a fresh wave of major attacks in the region. Israel bombed Iran's large South Pars gas field, seemingly without US knowledge, with Tehran retaliating by attacking Qatar's Ras Laffan vast liquefied natural gas facilities.

Benchmark Brent crude reached $115 a barrel while European gas prices spiked.

Iran continued missile attacks against fellow Gulf states on Friday, with Kuwait saying an oil refinery had been hit.

However, despite that energy prices fell back following an update from Benjamin Netanyahu.

Speaking at a press conference on Thursday evening, the Israeli prime minister said Iran's ability to enrich uranium and produce ballistic missiles had been destroyed, and that the regime was "cracking" as a result of the US-Israel attacks.

He also rejected the possibility of a lengthy campaign. While insisting he was "not putting a stopwatch" on the conflict, he added: "I see this war ending a lot faster than people think. In war you have to grit your teeth."

His remarks helped settle volatile energy markets somewhat and by 0830 GMT, Brent was down 1% at $107.42 a barrel while West Texas Intermediate fell 2% to $94.41. Gas prices were also notably lower.

Stephen Innes, managing partner at SPI Asset Management, said: "Netanyahu's remarks have poured a layer of soothing balm over sentiment.

"That narrative matters, because it shortens the perceived life of the supply shock. But even if the geopolitical chapter closes sooner than expected, the energy system does not reset on command. You do not rebuild liquefaction trains, repair export terminals or restore confidence in global shipping lanes with a press conference."

Susannah Streeter, chief investment strategist at Wealth Club, said: "Crude prices may have fallen back slightly but remain highly volatile.

"Traders are still assessing the cost of the damage inflicted on Ras Laffan, which is responsible for around a fifth of global LNG supplies. The damage could take years to repair, which is why these sharply higher prices may persist.

"However, the US administration is clearly rattled by rising energy prices, particularly in elevated gasoline costs become entrenched and hurt Republican electoral prospects."