U.S. equity benchmarks pared earlier losses Thursday after comments from Israeli Prime Minister Benjamin Netanyahu about Iran's military-industrial capacity, while crude oil prices moved lower as market participants digested the possible implications for regional supply.
The S&P 500, which had slipped about 1% earlier in the session, recovered to trade roughly flat after Netanyahu said at a news conference that following 20 days of U.S.-Israeli air attacks "Iran no longer has the capacity to enrich uranium or make ballistic missiles."
"We are winning, and Iran is being decimated," Netanyahu said, adding that Iran's missile and drone arsenal is being "massively degraded" and will be destroyed. He said the strikes are targeting factories that produce components for missiles and nuclear weapons.
Netanyahu did not provide evidence to support his assertion that Iran no longer has the capacity to enrich uranium.
The current round of hostilities began after the U.S. and Israel launched an air attack on Iran on February 28, which followed the collapse of mediated talks focused on Iran's nuclear program. In response to the air campaign, Iran has fired missiles at Israel and other Gulf countries and has restricted tanker traffic through the Strait of Hormuz.
Addressing domestic political fallout, Netanyahu said it was too soon to know whether Iranians might attempt to overthrow their government, stating, "It's up to the Iranian people to show that, to choose the moment and to rise to the moment."
He also indicated that air operations alone would not be sufficient and that a ground component would be necessary alongside air strikes, but he did not supply further details about any such plan or timeline.
Responding to suggestions that Israel had drawn the United States into the conflict, Netanyahu rejected that framing, asking rhetorically, "Does anyone really think that someone can tell President Trump what to do?"
Markets reacted to the public assessments and statements: the S&P 500 recovered from an earlier dip, while crude oil prices declined as investors considered the evolving security situation in the Middle East and its potential impact on energy flows and supply.
Market context
The interplay between geopolitical developments and asset prices was evident in trading after the news conference. Stocks stabilized after initial weakness, and oil moved lower as traders revised near-term expectations about disruptions to shipping and crude flows.
Note: This report summarizes public remarks and market movements tied to those remarks. Where claims were made without supporting evidence, that absence is stated in the text.