Oil costs hit six-month peak as Iran targets Gulf data centers

Brent crude reached its highest price since April this week, settling just over $116 per barrel on Friday. The benchmark for global oil trading surged by 3.5 percent before pulling back slightly, leaving the price more than 2.7 percent higher than the previous close. At its peak during trading, the cost of a barrel briefly exceeded $117.

The price increase followed announcements from Iranian officials regarding their list of potential targets for retaliation. If a new joint offensive by the United States and Israel begins, Tehran stated it would strike oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. Market analysts linked the spike to reports that Washington is considering renewed military strikes after the midterm elections, a move that signals a shift away from diplomatic solutions.

Richard Hunter, a broker at Interactive Investor, noted that the conflict, which many initially viewed as brief, is now entering its eighth month. This prolonged timeline has driven sustained price increases. Before the war began in February, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had pushed the price to $126 per barrel.

Physical attacks in the region have intensified this week. The Islamic Revolutionary Guards Corps in Iran 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, and recent incidents have increased the risk for commercial vessels navigating the area.

Susannah Streeter, chief investment strategist at Wealth Club, pointed out that fears are mounting that US and Israeli forces may target Iranian energy infrastructure after the November 3 elections. She added that Houthi rebels from Yemen have intensified attacks on Saudi Arabian facilities this week, adding further complexity to regional security.

In response to the instability, the US State Department ordered some diplomats and the families of US government employees to leave Saudi Arabia. Streeter also noted that Ukraine’s bombardment of Russian diesel refineries is adding pressure to global supply chains. For ships crossing the Strait of Hormuz, the journey remains dangerous due to projectiles still being fired at maritime traffic.