Brent crude settles at $116 as Iran targets Gulf tech hubs

Brent crude settled at just over $116 per barrel on Friday, marking the highest closing price since April. The benchmark for international oil pricing jumped approximately 3.5 percent during the session, briefly breaking the $117 mark before retreating slightly. The price finished more than 2.7 percent above the previous close.

The surge followed new guidance from Tehran regarding potential retaliation if a joint US-Israeli offensive resumes. Iranian officials stated that their forces would strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. This specific inclusion of technology hubs signaled a wider scope for potential conflict than previous exchanges.

Market participants attributed the price movement to reports that Washington is planning renewed military strikes. These operations are reportedly scheduled for after the November 3 midterm elections. Richard Hunter, a broker at Interactive Investor, noted that this shift from diplomacy to military action was sufficient to drive the spike. He observed that the conflict, initially seen as brief, is now entering its eighth month.

Regional instability has intensified throughout the week. The Islamic Revolutionary Guards Corps claimed strikes on four commercial ships in the Strait of Hormuz on Wednesday. The strait serves as a major chokepoint for global oil shipments, and these incidents have increased the risk for vessels navigating the area. Susannah Streeter, chief investment strategist at Wealth Club, pointed out that projectiles are still being fired at maritime traffic, keeping the journey dangerous for ships.

The United States responded to the rising instability by ordering some diplomats and government employee families to leave Saudi Arabia. This move comes as Houthi rebels from Yemen continue to attack the kingdom. Streeter noted that these attacks have intensified this week, adding another layer of complexity to regional security.

The current price levels reflect a sustained period of elevated costs. Before the war with Iran began in February, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price to touch $126 per barrel. Streeter also cited Ukraine’s bombardment of Russian diesel refineries as an additional factor pressuring global supply chains.