Crude tops $116 as Iran targets Gulf data hubs

Tehran listed Gulf data centers, undersea cables, and artificial intelligence systems as targets for retaliation if a new joint US-Israeli offensive begins. The announcement pushed Brent crude, the international benchmark for oil prices, to its highest level since April.

Brent crude surged by roughly 3.5 percent on Friday. During trading, the price crossed $117 per barrel. The benchmark later retreated, closing at just over $116. That figure represents a gain of more than 2.7 percent from the previous close.

Market participants reacted to reports that Washington is weighing renewed military strikes on Iran. These plans appear timed for the period following the midterm elections. Richard Hunter, a broker at Interactive Investor, said the shift away from diplomacy was enough to drive the spike. He noted that the conflict, which many initially viewed as brief, is now in its eighth month.

The price increase reflects a sustained period of high costs. In February, before the war with Iran began, Brent crude traded near $72 per barrel. By the end of April, prices had touched $126. Current levels keep costs elevated for consumers and businesses worldwide.

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

The US State Department ordered 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 added that fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the November 3 elections. She also pointed to Ukraine’s bombardment of Russian diesel refineries as an additional factor straining global supply chains.