Brent crude breaches $117 as Iran targets Gulf data centers

Brent crude briefly topped $117 a barrel on Friday, reaching its highest level since April. The international benchmark price surged by 3.5 percent during the session. Although the price retreated slightly before the close, it settled at just over $116 per barrel. This final figure was 2.7 percent higher than the previous day's closing price.

The price spike followed new statements from Iranian officials regarding retaliation strategies. Tehran indicated that if the United States and Israel launch a joint offensive, Iran would target specific assets in the Gulf. The strike list includes oil facilities, undersea cables, data centers, and artificial intelligence infrastructure. Richard Hunter, a broker at Interactive Investor, said this shift in strategy was sufficient to trigger the price jump. He noted that the conflict, initially viewed as brief, is now entering its eighth month.

Market analysts attribute the volatility to reports that the US is considering renewed military strikes on Iran. These plans appear to be timed for after the midterm elections. Susannah Streeter, chief investment strategist at Wealth Club, stated that fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the November 3 elections.

Regional tensions intensified earlier in the week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This waterway is a critical chokepoint for global oil shipments. Streeter added that the journey remains dangerous for ships attempting to cross the strait due to projectiles still being fired at maritime traffic.

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 faces continued attacks from Houthi rebels based in Yemen. Streeter pointed out that these attacks on Saudi Arabian facilities have intensified this week. Additionally, Ukraine’s bombardment of Russian diesel refineries is impacting global supply chains, further complicating the market environment.

Oil prices have remained elevated since the start of the war with Iran in February. Brent crude was trading at approximately $72 per barrel before the conflict began. By the end of April, tensions had driven the price up to touch $126 per barrel. The current levels represent a continued period of elevated costs for consumers and businesses worldwide. Traders are watching for further developments in the Gulf and the timing of any US military action.