Brent crude tops $116 as Iran lists Gulf data centers for strike

Brent crude settled just above $116 per barrel on Friday, marking its highest closing price since April. The international benchmark oil price surged by roughly 3.5 percent during the day, briefly crossing the $117 threshold before pulling back slightly. Traders reacted to fresh threats from Iranian officials regarding potential targets for retaliation against Gulf states.

Tehran stated that if the United States and Israel launch a new joint offensive, Iran will strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. This expansion of potential targets adds digital assets to the traditional energy infrastructure at risk. The move signals a shift in how Iran might respond to military pressure in the coming weeks.

Market watchers link the price jump to reports that the US is planning renewed strikes on Iran. These plans appear to be scheduled for after the November 3 midterm elections. Richard Hunter, a broker at Interactive Investor, noted that the conflict has entered its eighth month. He observed that the shift away from a purely diplomatic approach was enough to drive the immediate spike in costs.

The regional security environment worsened earlier this week when the Islamic Revolutionary Guards Corps claimed responsibility for striking four commercial ships in the Strait of Hormuz. This waterway is a critical chokepoint for global oil shipments. Susannah Streeter, chief investment strategist at Wealth Club, said projectiles are still being fired at maritime traffic, making the crossing dangerous for vessels.

The United States responded to the instability by ordering some diplomats and their families to leave Saudi Arabia. The kingdom has faced continued attacks from Houthi rebels in Yemen. Streeter pointed out that these Houthi attacks have intensified this week, adding another layer of risk to the region's energy exports.

Current oil prices remain well above pre-war levels. Before the conflict began in February, Brent crude traded at approximately $72 per barrel. By late April, tensions had pushed the price to a peak of $126 per barrel. Streeter also noted that Ukraine's bombardment of Russian diesel refineries is adding further pressure to global supply chains.