Brent crude hits $117 as Iran lists Gulf data centers as targets

Brent crude oil touched $117 per barrel on Friday, its highest level since April. The price spiked by roughly 3.5 percent during trading before settling at just over $116 per barrel. This close represented a 2.7 percent increase from the previous day's closing price.

The price surge followed statements from Iranian officials regarding retaliation targets. They indicated that if the United States and Israel launch a new joint offensive, Iran will strike back against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region.

Market analysts attributed the jump to reports that the US is considering renewed military strikes on Iran. These plans appear timed for after the midterm elections on November 3. Richard Hunter, a broker at Interactive Investor, said this shift from diplomacy to military action was enough to drive prices up. He noted that the conflict, which many viewed as brief, is now entering its eighth month.

Tensions in the region escalated throughout the week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. The strait serves as a major chokepoint for global oil shipments, and recent incidents have made navigation riskier for commercial vessels.

In response to the instability, the US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia. The kingdom has faced continued attacks from Houthi rebels based in Yemen. Susannah Streeter, chief investment strategist at Wealth Club, said fears are mounting that US and Israeli forces may target Iran’s energy infrastructure after the elections.

Streeter pointed out that Houthi attacks on Saudi facilities intensified this week. She added that ships crossing the Strait of Hormuz face danger from projectiles still being fired at maritime traffic. She also noted that Ukraine’s bombardment of Russian diesel refineries is adding further pressure to global supply chains.