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

Brent crude settled just over $116 per barrel on Friday, marking its highest close since April.

The international benchmark price surged by approximately 3.5 percent during trading, briefly surpassing $117 before retreating slightly. Despite the pullback, the final price remained more than 2.7 percent higher than the previous day’s close.

The price spike followed statements from Iranian officials outlining potential retaliation targets for a new joint US-Israeli offensive. Tehran indicated it would strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region if the offensive proceeded.

Market analysts attributed the volatility to widespread reports that the United States is considering renewed military strikes on Iran. These plans appear timed for after the midterm elections, signaling a shift from a purely diplomatic approach. Richard Hunter, a broker at Interactive Investor, stated that this shift was sufficient to drive the price spike. He noted that the conflict, initially viewed as brief, is now entering its eighth month.

The conflict began in February, when Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price to $126. The current levels represent a continued period of elevated costs for global consumers and businesses.

Regional tensions intensified earlier in the week when the Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz. This strait is a critical chokepoint for global oil shipments, and recent incidents have increased risks for commercial vessels. In response to the instability, the US State Department ordered some diplomats and their families to leave Saudi Arabia. The kingdom faces continued attacks from Houthi rebels based in Yemen.

Susannah Streeter, chief investment strategist at Wealth Club, stated that fears are mounting that American and Israeli forces may target Iran’s energy infrastructure after the US elections on November 3. She pointed out that Houthi attacks on Saudi facilities have intensified. Streeter added that the journey through the Strait of Hormuz remains dangerous due to projectiles fired at maritime traffic. She also noted that Ukraine’s bombardment of Russian diesel refineries is adding further pressure to global supply chains.