Oil tops $116 as Iran targets Gulf data centers

Brent crude finished Friday's session at $116.50 per barrel, marking a six month high.

The international benchmark price rose by 2.7 percent over the previous close. During the trading day, the value briefly crossed the $117 threshold before settling near the higher end of its recent range. This movement follows a week of heightened volatility in global energy markets. Traders reacted to reports that the United States is planning new military actions against Iran after the midterm elections.

The conflict has dragged on for eight months, shifting from what observers initially expected to be a brief exchange. Richard Hunter, a broker at Interactive Investor, noted that the shift toward a renewed offensive strategy drove the price spike. The timeline of the war shows a steady climb in costs. In February, before hostilities began, Brent traded around $72 per barrel. By late April, prices had peaked at $126. The current levels indicate that elevated costs for consumers and businesses are persisting rather than fading.

Iranian officials specified the targets for potential retaliation this week. They named oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. 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 increased the risk for commercial vessels navigating the area. The US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia in response to the instability.

Susannah Streeter, chief investment strategist at Wealth Club, warned that fears are mounting regarding American and Israeli forces targeting Iran’s energy infrastructure after the US elections on November 3. She pointed out that Houthi rebels based in Yemen have intensified attacks on Saudi Arabian facilities this week. Streeter added that the journey for ships crossing the Strait of Hormuz remains dangerous due to projectiles still being fired at maritime traffic. Ukraine’s bombardment of Russian diesel refineries is also contributing to supply concerns. This additional pressure on supply chains further complicates the market environment.