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Global oil and energy prices are reeling as the war in the Middle East escalates

STEVE INSKEEP, HOST:

We are at the end of a week that called attention to U.S. cooperation with Israel in the war against Iran.

LEILA FADEL, HOST:

This week, a Trump administration official resigned, saying that Israel had pressured the U.S. into war. Israel struck Iranian natural gas infrastructure, and President Trump claimed no one warned him. Coming up, we'll speak with an energy analyst about how tit-for-tat attacks on gas fields in the Middle East are affecting global energy markets. First, Israel's prime minister, Benjamin Netanyahu, is giving his account of the events while the Israeli military launches a new wave of airstrikes across Iran.

INSKEEP: NPR's Carrie Kahn is covering all this from Tel Aviv. Hi there, Carrie.

CARRIE KAHN, BYLINE: Hi. Good morning.

INSKEEP: How is Benjamin Netanyahu talking through all this?

KAHN: Yesterday at a press conference with foreign reporters, he said Israel acted alone striking that Iranian gas compound and said, quote, "President Trump asked us to hold off on any future attacks, and we're holding off."

(SOUNDBITE OF ARCHIVED RECORDING)

PRIME MINISTER BENJAMIN NETANYAHU: I don't think any two leaders have been as coordinated as President Trump and I. He's the leader. I'm, you know, his ally.

KAHN: Even though Trump claims the U.S. didn't know about the Israeli strike in advance, just want to tell you that a person briefed on the matter did tell NPR that the U.S. and Israel are coordinating on all targets. And again, Netanyahu says it's fake news to say Israel dragged the U.S. into this war. He said nobody can tell President Trump what to do, and he claimed Iran no longer has the capacity to enrich uranium. He made that claim in Hebrew only, and he did not provide any evidence. And yesterday, an oil refinery in the northern city of Haifa was hit here. There was no significant damage. That's according to Israel's energy minister. And I just need to tell you, it's been a very active morning here in central Israel with multiple antimissile sirens sounding.

INSKEEP: Yeah. I know you've had to go down to the shelters a couple times as we've been preparing for this report. Remarkable the Netanyahu would claim that one of Israel's war aims and U.S. war aims has been achieved, but he doesn't give evidence. We'll look for more there. And what else is happening in the war?

KAHN: Well, in the Gulf, it's been active morning, too. Dubai reporting heavy explosions there as its air defense systems engaged incoming missiles and drones. An oil refinery in Kuwait was also hit today, and Qatari officials tally damage estimates from an Iranian strike to a major natural gas complex there. They say it will top $20 billion in lost revenue. And yesterday, Saudi Arabia's foreign minister had words of caution to Iran. He said the kingdom's patience is, quote, "not unlimited" and said it, quote, "reserves the right to take military action."

INSKEEP: OK. So a lot is happening at a time that should be a holiday or is a holiday for many people across the Middle East, the end of the Muslim holy month of Ramadan. What's the mood like?

KAHN: It's not celebratory mood here, for sure. It's tents here in Israel. Israeli police used tear gas to disperse a group of Muslim worshippers this morning walking toward the Old City in Jerusalem. Since the war, Israeli authorities have closed the Al-Aqsa Mosque, one of Islam's holiest sites. They cite safety concerns because of incoming missile fire, and they say the compound doesn't have adequate shelter. But Mustafa Abu Sway, a member of the Islamic authority that manages the mosque, says those security concerns ring hollow. He told me they are an excuse for Israel to exert more control over the sacred site. He says people are sad and need to come together to pray, he says.

MUSTAFA ABU SWAY: So if you tell them don't go to pray, that's the only place where they could have some hope.

KAHN: What else can they do to find hope and community, he says, in these tough times? And, of course, in Lebanon, the humanitarian crisis there is dire. More than 1.2 million people now displaced and the death toll topping 1,000. And that's all from the pounding Israeli airstrikes there against Iranian-backed Hezbollah militants that continue firing missiles into northern Israel.

INSKEEP: NPR's Carrie Kahn is in Tel Aviv. Carrie, thanks so much.

KAHN: You're welcome. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Carrie Kahn is NPR's International Correspondent based in Mexico City, Mexico. She covers Mexico, the Caribbean, and Central America. Kahn's reports can be heard on NPR's award-winning news programs including All Things Considered, Morning Edition and Weekend Edition, and on NPR.org.
Steve Inskeep is a host of NPR's Morning Edition, as well as NPR's morning news podcast Up First.