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

Brent crude, the global benchmark for oil pricing, closed at just over $116 per barrel on Friday. The price remained 2.7 percent higher than the previous close after briefly crossing the $117 mark earlier in the session. This level represents the highest price recorded since April.

The price movement followed specific warnings from Tehran. Iranian officials stated that the country would strike back against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region if a new joint US-Israeli offensive began. Richard Hunter, a broker at Interactive Investor, said this shift in strategy was enough to drive the market spike. He noted that the conflict, initially viewed as brief, is now entering its eighth month.

The current surge follows a volatile trend over the past eight months. In February, before the war started, Brent crude traded at approximately $72 per barrel. By late April, tensions had pushed the price to $126. The market has since remained in a period of elevated costs for consumers and businesses.

Physical attacks in the region accelerated during this week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. Susannah Streeter, chief investment strategist at Wealth Club, described the strait as dangerous for maritime traffic due to projectiles still being fired at ships. She added that Houthi rebels in Yemen intensified attacks on Saudi Arabian facilities this week.

The US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia in response to the instability. Streeter indicated that fears are growing that American and Israeli forces may target Iran’s energy infrastructure after the US midterm elections on November 3.

Supply concerns extend beyond the Middle East. Streeter pointed out that Ukraine’s bombardment of Russian diesel refineries is adding pressure to global supply chains. This factor complicates an already volatile market environment alongside the geopolitical risks in the Gulf.

Traders are currently monitoring the Strait of Hormuz and the timing of US military decisions. The price of crude remains sensitive to reports of renewed strikes planned for after the November 3 elections.