Oil hits $117 as Iran targets Gulf data centers and ships

Brent crude prices spiked to $117 per barrel on Friday, the highest level since April. The international benchmark for oil trading ended the day at just over $116, a 2.7 percent increase from the previous close. This sharp rise marks a peak in energy costs that has persisted for over six months.

The conflict with Iran began in February. At that time, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price up to touch $126. The current levels indicate that high costs remain a constant factor for consumers and businesses worldwide.

Tensions escalated this week with new threats from Tehran. Iranian officials stated that if a new joint US-Israeli offensive is launched, the country will strike back against specific targets. These targets include oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region.

Market analysts linked the price jump to reports that the United States is considering renewed military strikes on Iran. These plans appear to be timed for after the midterm elections. Richard Hunter, a broker at Interactive Investor, noted that this shift from a diplomatic approach was sufficient to cause the spike. He observed that the conflict is now entering its eighth month.

Physical threats to shipping have also increased. The Islamic Revolutionary Guards Corps in Iran claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This strait is a critical chokepoint for global oil shipments. Recent incidents have made navigation through the area increasingly risky for commercial vessels.

The US State Department issued orders for some diplomats and 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, highlighted that fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the US elections on November 3.

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