Brent crude settles above $116 after Iran targets Gulf digital and energy assets

Brent crude, the global benchmark for oil pricing, settled just above $116 per barrel on Friday, marking its highest close since April. The price surged approximately 3.5 percent during trading hours, briefly crossing the $117 mark before retreating slightly. This movement places the benchmark more than 2.7 percent higher than its previous close.

The spike follows statements from Iranian officials indicating that Tehran would strike specific targets in the Gulf region if the United States and Israel launch a new joint offensive. These targets include oil facilities, undersea cables, data centers, and artificial intelligence infrastructure. Market analysts attribute the price jump to reports that Washington is considering renewed military strikes, a move potentially timed for after the US midterm elections.

Richard Hunter, a broker at Interactive Investor, noted that the shift from diplomacy to military planning was sufficient to drive the price spike. He observed that the conflict, initially viewed by some as brief, is now entering its eighth month. In February, before the war began, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had pushed the price to $126.

Regional instability has intensified throughout the week. The Islamic Revolutionary Guards Corps claimed on Wednesday to have struck four commercial ships in the Strait of Hormuz. This waterway is a critical chokepoint for global oil shipments, and recent incidents have increased risks for commercial vessels navigating the area.

In response to the rising instability, the US State Department ordered some diplomats and families of 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, stated that fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the November 3 elections.

Streeter pointed out that Houthi attacks on Saudi facilities have intensified this week. She added that the journey across the Strait of Hormuz remains dangerous for ships due to projectiles being fired at maritime traffic. Beyond the Middle East, Ukraine’s bombardment of Russian diesel refineries is also impacting global energy supplies, adding further pressure to an already volatile market.