Brent Crude Settles at $116 as Iran Targets Gulf Tech and Oil Sites

Brent crude finished Friday trading just above $116 a barrel, marking the highest settlement price since April. The benchmark for global oil pricing rose more than 2.7 percent from the previous day, after intraday trading briefly pushed the value past $117.

The price spike followed statements from Iranian officials regarding potential targets for retaliation. Tehran indicated it would strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region if a new joint US-Israeli offensive were launched. These threats align with widespread reports that the United States is considering renewed military strikes on Iran, timed for after the midterm elections.

Richard Hunter, a broker at Interactive Investor, noted that the shift away from a purely diplomatic approach was sufficient to drive the recent price jump. He observed that the conflict, which many initially viewed as brief, is now entering its eighth month.

Tensions in the region intensified earlier in the week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This strait serves as a critical chokepoint for global oil shipments, and recent incidents have made navigation through the area increasingly risky for commercial vessels.

In response to the rising instability, the US State Department issued orders for 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, adding another layer of complexity to regional security. Susannah Streeter, chief investment strategist at Wealth Club, pointed out that these attacks on Saudi Arabian facilities have intensified this week.

Streeter added that for ships attempting to cross the Strait of Hormuz, the journey remains dangerous due to projectiles still being fired at maritime traffic. She highlighted that fears are mounting that American and Israeli forces may be ordered to target Iran’s energy infrastructure after the US elections on November 3.

Other global factors are also contributing to supply concerns. Streeter noted that Ukraine’s bombardment of Russian diesel refineries is impacting the global energy market. This additional pressure on supply chains complicates an already volatile environment. Brent crude was trading at approximately $72 a barrel in February, before the war with Iran began, and touched $126 by the end of April.