Brent crude settles at $116 as Iran targets Gulf data centers

Global oil buyers faced their highest costs in six months on Friday as Brent crude settled at just over $116 per barrel. The price spike reflects growing market anxiety over a new phase of the Middle East conflict, specifically regarding threats to digital infrastructure in the Gulf.

Brent crude, the international benchmark for oil pricing, rose 3.5 percent during Friday trading. At its peak, the contract exceeded $117 per barrel, a level not seen since April. Although the price pulled back slightly before the close, it finished 2.7 percent above the previous session. This represents a substantial jump from February, when the war with Iran began and the oil traded at approximately $72 per barrel.

Tehran officials outlined specific targets for retaliation if a new joint US-Israeli offensive begins. The list includes oil facilities, undersea cables, data centers, and artificial intelligence infrastructure located in the Gulf region. Richard Hunter, a broker at Interactive Investor, stated that the shift toward potential military action was sufficient to drive the price spike. He noted that the conflict, initially viewed as brief, is now entering its eighth month.

Market analysts link the price movement to reports that the United States is considering renewed strikes on Iran. These plans appear to be timed for after the midterm elections, signaling a move away from a purely diplomatic approach. Susannah Streeter, chief investment strategist at Wealth Club, said fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the November 3 elections.

Physical risks in the region have also increased. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This waterway is a critical chokepoint for global oil shipments. Streeter added that the journey remains dangerous for ships crossing the strait due to projectiles being fired at maritime traffic.

The US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia. This move follows continued attacks on the kingdom by Houthi rebels based in Yemen. Streeter pointed out that these Houthi attacks on Saudi Arabian facilities have intensified this week, adding another layer of complexity to regional security.

Supply concerns extend beyond the Middle East. Streeter noted that Ukraine’s bombardment of Russian diesel refineries is also impacting global energy supplies. This additional pressure on supply chains compounds the volatility already present in the market due to the Middle East tensions.