Oil tops $117 as Iran vows to hit Gulf data centers

Brent crude reached $117 per barrel on Friday, marking the highest price in more than six months.

The international benchmark for oil pricing surged by roughly 3.5 percent during trading. Although the price pulled back slightly before the close, it settled at just over $116. This final figure stands more than 2.7 percent above the previous day's closing price.

Iranian 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. Market analysts linked the price jump to reports that the United States is planning renewed military strikes. These strikes are reportedly timed for after the midterm elections.

Richard Hunter, a broker at Interactive Investor, noted that the shift toward military action caused the spike. He observed that the conflict, initially viewed as brief, is now entering its eighth month. Susannah Streeter, chief investment strategist at Wealth Club, pointed out that fears are growing about targets in Iran's energy sector following the November 3 elections.

Tensions in the region have intensified over the past week. The Islamic Revolutionary Guards Corps in Iran 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. Recent incidents have made navigation through the area riskier for commercial vessels.

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. Streeter added that projectiles are still being fired at maritime traffic in the Strait of Hormuz.

Oil prices have risen sharply since the war began in February. Before the conflict, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had driven the price to $126 per barrel. Streeter noted that Ukraine's bombardment of Russian diesel refineries is also adding pressure to global supply chains.