Oil prices hit six-month high as Iran targets Gulf tech hubs

Iranian officials announced this week that they would target digital and energy infrastructure in the Gulf if a new US-Israeli offensive begins. The statement sent crude oil prices to their highest level since April. Brent crude, the global benchmark for oil, closed Friday trading at just over $116 per barrel.

The price rose by more than 2.7 percent from the previous close. During Friday trading, the benchmark briefly surpassed $117 per barrel. This marks a sharp increase from the start of the conflict. In February, before the war began, Brent crude traded at approximately $72 per barrel. By late April, prices had touched $126 per barrel before settling at the current elevated levels.

Tehran specified that retaliation would include strikes on oil facilities, undersea cables, data centers, and artificial intelligence infrastructure. The threat follows widespread reports that the United States is considering renewed military strikes after its midterm elections on November 3. Richard Hunter, a broker at Interactive Investor, noted that the shift from diplomacy to potential military action drove the recent price spike. He observed that the conflict is now entering its eighth month.

Physical risks in the region have increased alongside the threats. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. The strait serves as a critical chokepoint for global oil shipments. Susannah Streeter, chief investment strategist at Wealth Club, said the journey remains dangerous for ships due to projectiles still 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 by Houthi rebels based in Yemen. Streeter pointed out that these attacks on Saudi facilities have intensified this week. She also noted that Ukraine’s bombardment of Russian diesel refineries is adding further pressure to global supply chains.

Market analysts linked the price jump to fears that American and Israeli forces may target Iran’s energy infrastructure after the elections. The combination of military threats in the Gulf and supply disruptions in Europe has created a volatile environment for traders. Consumers and businesses worldwide continue to face higher energy costs as a result.