The Washington Post is reporting that Benjamin Netanyahu has told the Biden administration that Israel is willing to limit strikes on Iran to military targets, rather than oil or nuclear facilities. Citing unnamed officials, the Post writes that this suggests that Netanyahu is considering a more limited counterstrike in retaliation for Iran’s missile barrage launched on 1 October.

The retaliatory action would be calibrated to avoid the perception of “political interference in the U.S. elections,” the official familiar with the matter said, signaling Netanyahu’s understanding that the scope of the Israeli strike has the potential to reshape the presidential race.

An Israeli strike on Iranian oil facilities could send energy prices soaring, analysts say, while an attack on the country’s nuclear research program could erase any remaining red lines governing Israel’s conflict with Tehran, triggering further escalation and risking a more direct U.S. military role. Netanyahu’s stated plan to go after military sites instead, as Israel did after Iran’s attack in April, was met with relief in Washington.

Biden has said he would not support an attack on Iran’s nuclear sites and oil markets have been on edge over the prospect of an Israeli strike against Iranian oil fields. Gulf states have lobbied Washington to stop Israel from attacking Iran’s oil sites because they are concerned their own oil facilities could come under fire from Tehran’s proxies if the conflict escalates.

Oil dropped at the start of trading after the report was published. West Texas Intermediate futures retreated as much as 2.9% to $71.70 a barrel, after already losing 2.3% on Monday, Bloomberg reported.

In a statement responding to the Washington Post article, Netanyahu’s office said “we listen to the opinions of the United States, but we will make our final decisions based on our national interest”.