Investing.com -- The S&P 500 erased earlier declines Thursday following comments from Israeli Prime Minister Benjamin Netanyahu regarding Iran’s military capabilities, while crude oil prices fell.

The benchmark index had been down 1% earlier in the session but recovered to trade nearly flat after Netanyahu told a news conference that Iran no longer has the capacity to enrich uranium or make ballistic missiles following 20 days of U.S.-Israeli air attacks.

"We are winning, and Iran is being decimated," Netanyahu said, noting that Iran’s missile and drone arsenal is being massively degraded and will be destroyed.

Netanyahu stated that the attacks are targeting factories that produce components for missiles and nuclear weapons. He did not provide evidence for his claim that Iran no longer had the capacity to enrich uranium.

The conflict began when the U.S. and Israel launched an air attack on Iran on February 28, following the collapse of mediated talks focused on Iran’s nuclear program. Iran has responded by firing missiles at Israel and other Gulf countries while limiting tanker traffic through the Strait of Hormuz.

Netanyahu said it was too soon to determine whether Iranians would attempt to overthrow their government, adding "It’s up to the Iranian people to show that, to choose the moment and to rise to the moment."

The Israeli Prime Minister indicated that a ground component would be necessary alongside air attacks, though he did not provide details. He also denied dragging the United States into the conflict, stating "Does anyone really think that someone can tell President Trump what to do?"

Crude oil prices declined as markets digested the implications of the comments on Middle East tensions and potential supply disruptions.