Brent Crude Tops $117 After Iran Targets Gulf Tech and Energy

Brent crude reached its highest price since April, with Iranian officials listing data centers and AI infrastructure as potential strike targets.

The benchmark price for global oil trading rose by approximately 3.5% on Friday. At one point during the session, the cost per barrel exceeded $117. Although the price pulled back slightly before the close, it settled just above $116. This final figure represents an increase of more than 2.7% compared to the previous trading day.

The surge followed statements from Tehran regarding retaliation if a new joint offensive by the United States and Israel begins. Iranian officials said the country would target oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. Market analysts linked the price jump to reports that Washington is considering renewed military strikes. These plans appear to be timed for after the midterm elections, signaling a shift away from a purely diplomatic approach.

Richard Hunter, a broker at Interactive Investor, said this shift was enough to cause the spike in prices. He noted that the conflict, initially viewed as brief, is now entering its eighth month. The current price levels reflect a period of elevated costs that began in February, when Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price to touch $126 per barrel.

Tensions in the region intensified this week as the Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This strait is a key chokepoint for global oil shipments. Recent incidents have made navigation through the area risky 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 faces continued attacks from Houthi rebels based in Yemen. Susannah Streeter, chief investment strategist at Wealth Club, said fears are mounting that American and Israeli forces may target Iran's energy infrastructure after the US elections on November 3. She added that Houthi attacks on Saudi facilities have intensified this week.

Streeter noted that the journey for ships crossing the Strait of Hormuz remains dangerous due to projectiles fired at maritime traffic. She also pointed to other global factors affecting supply. Ukraine's bombardment of Russian diesel refineries is adding pressure to global energy chains, further complicating the market environment.