Brent crude hits $117 as Iran targets Gulf data centers and oil sites

Brent crude breached $117 a barrel on Friday, reaching its highest level since April. The international benchmark price closed the session just over $116, representing a rise of more than 2.7 percent from the previous close.

The surge followed statements from Iranian officials outlining potential targets for a new joint US-Israeli offensive. Tehran indicated it would strike back against oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. Richard Hunter, a broker at Interactive Investor, said the shift from diplomacy to military planning was enough to drive the price spike.

Market watchers link the volatility to reports that the United States is considering renewed strikes on Iran after its midterm elections. Hunter noted that the conflict, initially viewed as brief, is now entering its eighth month. In February, before the war began, Brent crude traded at roughly $72 a barrel. By late April, prices had touched $126.

Regional tensions intensified earlier in the week when the Islamic Revolutionary Guards Corps claimed it struck four commercial ships in the Strait of Hormuz. The strait is a key chokepoint for global oil shipments, and Susannah Streeter, chief investment strategist at Wealth Club, warned that projectiles continue to be fired at maritime traffic, making the passage dangerous.

The US State Department ordered some diplomats and employees' families to leave Saudi Arabia amid rising instability. The kingdom has faced continued attacks from Houthi rebels in Yemen. Streeter said fears are mounting that US and Israeli forces may target Iranian energy infrastructure after the November 3 elections.

Other global factors are adding to supply concerns. Streeter pointed to Ukraine's bombardment of Russian diesel refineries, which is impacting global energy supplies. These developments create additional pressure on an already volatile market.