Oil Markets: Brent Crude Tops $117 as Iran Targets Gulf Infrastructure

Brent crude oil prices climbed above $117 per barrel on Friday, reaching their highest point since April. The international benchmark for oil trading gained roughly 3.5% during the session. Although the price pulled back slightly before the close, it settled at just over $116, a rise of more than 2.7% from the previous day's final price.

Iranian officials stated that their country would retaliate against specific targets in the Gulf region if a new joint US-Israeli offensive is launched. The named targets include oil facilities, undersea cables, data centers, and artificial intelligence infrastructure. These statements followed widespread reports that the United States is considering renewed military strikes on Iran. Such action is reportedly being planned for a window after the November 3 midterm elections.

Richard Hunter, a broker at Interactive Investor, attributed the price spike to the shift from diplomatic efforts to potential military action. He noted that the conflict, which many observers initially predicted would be brief, is now entering its eighth month. Susannah Streeter, chief investment strategist at Wealth Club, observed that fears are growing that American and Israeli forces may target Iran’s energy infrastructure. She added that Houthi rebels based in Yemen have intensified attacks on Saudi Arabian facilities this week.

Tensions in the region escalated further on Wednesday when the Islamic Revolutionary Guards Corps claimed responsibility for striking four commercial ships in the Strait of Hormuz. This waterway serves as a major chokepoint for global oil shipments. The incident has made navigation through the strait riskier for commercial vessels, as projectiles continue to be fired at maritime traffic.

The US State Department responded to the instability by ordering some diplomats and the families of US government employees to leave Saudi Arabia. This move comes as the kingdom faces continued pressure from Houthi rebels. Streeter also pointed to other global factors affecting supply. She noted that Ukraine’s bombardment of Russian diesel refineries is adding additional pressure to global energy chains.

Brent crude traded at approximately $72 per barrel in February, before the war with Iran began. By the end of April, the price had touched $126 per barrel. Current levels maintain a period of elevated costs for consumers and businesses worldwide. The market remains focused on the potential timing of US military action and the stability of shipping lanes in the Gulf.