Brent crude breaks $117 after Iran lists Gulf data centers as targets

Brent crude oil traded above $117 per barrel on Friday, reaching its highest price since April. The international benchmark for oil pricing jumped by roughly 3.5 percent during the session. Although the price pulled back slightly before the close, it settled at just over $116, a gain of more than 2.7 percent from the previous day.

The market reaction followed specific threats from Iranian officials. Tehran stated that if a new joint US-Israeli offensive began, Iran would retaliate against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. This expansion of potential targets beyond traditional energy sites added a new layer of risk to the conflict.

Richard Hunter, a broker at Interactive Investor, attributed the price spike to reports that the United States is planning renewed military strikes on Iran. He noted that these operations appear scheduled for after the midterm elections. Hunter observed that what initially looked like a brief conflict is now entering its eighth month, moving away from a purely diplomatic approach.

The cost of crude has risen sharply since the war began. In February, before hostilities started, Brent crude traded at approximately $72 per barrel. By the end of April, prices had touched $126. The current levels indicate that consumers and businesses face continued high energy costs.

Tensions escalated further this week with claims from the Islamic Revolutionary Guards Corps. Iranian forces said they struck four commercial ships in the Strait of Hormuz on Wednesday. The strait serves as a critical chokepoint for global oil shipments, and recent incidents have made the waterway riskier for commercial vessels.

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

Streeter added that the Strait of Hormuz remains dangerous for ships due to projectiles fired at maritime traffic. She also noted that Ukraine’s bombardment of Russian diesel refineries is adding further pressure to global supply chains, complicating an already volatile market environment.