Brent crude closes at $116 as Iran targets Gulf tech and energy

Brent crude settled above $116 per barrel on Friday.

The international benchmark price climbed approximately 3.5 percent during the trading session. At one point, the cost exceeded $117 per barrel. This marked the highest level since April. The price later pulled back slightly but remained more than 2.7 percent above the previous close.

The surge followed remarks from Iranian officials regarding retaliation targets. They stated that if the United States and Israel launch a new joint offensive, Iran will strike back against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. Analysts linked the price jump to reports that Washington is considering renewed military strikes on Iran. These plans appear to be timed for after the November 3 midterm elections.

Richard Hunter, a broker at Interactive Investor, noted that the shift from diplomatic approaches to military planning caused the spike. He observed that the conflict is now entering its eighth month. Before the war began in February, Brent crude traded at approximately $72 per barrel. By the end of April, the price had reached $126 per barrel.

Tensions in the region intensified earlier this week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This strait serves as a key chokepoint for global oil shipments. Recent incidents have made navigation through the area riskier for commercial vessels.

The US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia. The kingdom has faced 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. She pointed out that Houthi attacks on Saudi facilities have intensified this week.

Streeter added that the journey across the Strait of Hormuz remains dangerous due to projectiles fired at maritime traffic. She also noted that Ukraine’s bombardment of Russian diesel refineries is impacting global supply chains. This additional pressure contributes to the volatile market environment.