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

Brent crude finished Friday trading at just over $116 per barrel after peaking above $117 earlier in the session. The benchmark price rose by more than 2.7 percent from the previous close, marking the highest settlement since April. This surge reflects growing market anxiety over a potential new phase in the Middle East conflict.

The price spike followed a specific threat from Iranian officials. Tehran stated that if the United States and Israel launch a joint offensive, Iran will retaliate against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf. This explicit inclusion of digital infrastructure signals a widening of the conflict beyond traditional energy targets.

Market analysts link the price jump to reports that the United States is planning renewed military strikes on Iran. These operations appear scheduled for after the November 3 midterm elections. Richard Hunter, a broker at Interactive Investor, said this shift from diplomacy to military action caused the immediate price spike. He noted that the conflict, which many initially expected to be brief, is now entering its eighth month.

The current price levels are part of a volatile trend since the war began in February. Before the conflict, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price to touch $126 per barrel. The market has since fluctuated but remains elevated compared to pre-war levels, keeping costs high for global consumers and businesses.

Regional tensions intensified this week with reports of physical attacks on shipping lanes. The Islamic Revolutionary Guards Corps claimed strikes on four commercial ships in the Strait of Hormuz on Wednesday. This strait is a critical chokepoint for global oil shipments, and recent incidents have increased the risk for commercial vessels passing through the area.

In response to the instability, the US State Department ordered some diplomats and government employee families to leave Saudi Arabia. The kingdom faces 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 will target Iran’s energy infrastructure after the US elections. She added that the journey through the Strait of Hormuz remains dangerous due to projectiles fired at maritime traffic.

Global supply concerns extend beyond the Middle East. Streeter noted that Ukraine’s bombardment of Russian diesel refineries is also impacting global energy markets. This additional pressure on supply chains complicates the market environment as traders weigh multiple simultaneous threats to energy output.