Brent crude settles above $116 as Iran targets Gulf data hubs

Brent crude rose 3.5 percent on Friday, briefly surpassing $117 per barrel before settling just above $116. That closing price marked the highest level for the global benchmark since April.

The price spike followed statements from Iranian officials outlining potential retaliation targets. If a new joint US-Israeli offensive begins, Tehran intends to strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region.

Richard Hunter, a broker at Interactive Investor, attributed the price jump to reports that the United States is considering renewed military strikes. Hunter noted that the conflict, initially viewed as brief, is now entering its eighth month. He said the shift away from diplomacy was enough to drive the market higher.

The regional conflict has already driven oil costs higher this year. Before the war began in February, Brent crude traded at approximately $72 per barrel. By the end of April, prices had touched $126 per barrel.

Tensions escalated further this week as the Islamic Revolutionary Guards Corps claimed strikes on four commercial ships in the Strait of Hormuz. The strait serves as a critical chokepoint for global oil shipments, and recent incidents have increased risks for vessels passing through the area.

In response to the instability, the US State Department ordered some diplomats and families of US government employees to leave Saudi Arabia. The kingdom faces continued attacks from Houthi rebels based in Yemen. Susannah Streeter, chief investment strategist at Wealth Club, warned that American and Israeli forces may target Iran’s energy infrastructure after the November 3 US elections.

Streeter added that projectiles continue to be fired at maritime traffic in the Strait of Hormuz, making the journey dangerous for ships. She also pointed to Ukraine’s bombardment of Russian diesel refineries as an additional factor pressuring global supply chains.