Oil tops $116 as Iran expands Gulf strike list to include AI and data centers

Brent crude surged to its highest level since April on Friday, briefly crossing the $117 per barrel mark before settling just above $116. The benchmark price rose by approximately 3.5 percent, leaving it more than 2.7 percent higher than the previous close. This sharp increase reflects growing market anxiety over the expanding scope of the conflict in the Middle East.

The price jump followed new statements from Iranian officials regarding retaliation. Tehran indicated that if a joint US-Israeli offensive begins, it will target oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region. By listing digital assets alongside traditional energy sites, Iran has broadened the range of vulnerable infrastructure that traders must now price in.

Market analysts attribute the volatility to reports that the United States is planning renewed military strikes. These operations are reportedly scheduled for after the midterm elections on November 3. Richard Hunter, a broker at Interactive Investor, noted that the shift from diplomacy to military planning triggered the spike. He observed that the conflict, initially viewed as brief, is now entering its eighth month.

The current price levels mark a steady climb from earlier in the year. In February, before the war began, Brent crude traded at roughly $72 per barrel. By the end of April, tensions had pushed the price to $126. Consumers and businesses worldwide continue to face elevated costs as prices remain well above pre-war averages.

Regional instability intensified earlier this week. The Islamic Revolutionary Guards Corps claimed attacks on four commercial ships in the Strait of Hormuz on Wednesday. This chokepoint is critical for global oil shipments, and recent incidents have made navigation riskier for vessels. In response to the unrest, the US State Department ordered some diplomats and their families to leave Saudi Arabia.

Susannah Streeter, chief investment strategist at Wealth Club, pointed to fears that American and Israeli forces may target Iran’s energy infrastructure after the US elections. She noted that Houthi rebel attacks on Saudi facilities have intensified, adding pressure to the region. Streeter also highlighted that Ukraine’s bombardment of Russian diesel refineries is contributing to global supply concerns, further complicating the market environment.