Oil hits $117 as Iran targets Gulf data centers

Brent crude briefly exceeded $117 per barrel on Friday, marking the highest price recorded since April. The international benchmark for oil pricing surged by approximately 3.5 percent during the session. Although the price retreated slightly before the close, it settled at just over $116 per barrel. This final figure was more than 2.7 percent higher than the previous closing price.

The price jump followed statements from Iranian officials regarding potential targets for retaliation. Tehran indicated that if a new joint US-Israeli offensive were launched, the country would strike back against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. This list marks a shift from traditional military and energy targets to include critical digital hubs that support commerce and cloud computing services in the area.

Market analysts attribute the volatility to widespread reports that the United States is considering renewed military strikes. These plans appear to be timed for after the midterm elections on November 3. Richard Hunter, a broker at Interactive Investor, noted that this shift away from a purely diplomatic approach was sufficient to cause the price spike. He observed that what many initially viewed as a brief conflict is now entering its eighth month.

The current levels represent a continued period of elevated costs for consumers and businesses worldwide. In February, before the war with Iran began, Brent crude was trading at approximately $72 per barrel. By the end of April, tensions had driven the price up to touch $126 per barrel. The recent surge places the current market near the peak of that previous spike.

Tensions in the region intensified throughout the week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This strait is a critical chokepoint for global oil shipments. Susannah Streeter, the chief investment strategist at Wealth Club, added that the journey remains dangerous for maritime traffic due to projectiles still being fired at ships.

The US State Department issued orders for 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. Streeter pointed out that these attacks on Saudi Arabian facilities have intensified this week, adding another layer of complexity to regional security.