Brent crude settles at $116 after Iran targets Gulf tech hubs

Energy markets have entered their eighth month of volatility as geopolitical friction in the Middle East accelerates.

Brent crude, the global pricing benchmark, surged 3.5 percent on Friday before closing at just over $116 per barrel. The price briefly crossed the $117 mark during the session, marking the highest level recorded since April. The settlement price was 2.7 percent higher than the previous close.

The price jump followed specific threats from Tehran regarding potential retaliation. Iranian officials stated that a new joint US-Israeli offensive would trigger strikes on Gulf region assets. These targets now include oil facilities, undersea cables, data centers, and artificial intelligence infrastructure.

Market participants linked the spike to reports that the United States is weighing renewed military action. These plans appear aligned with the period following the November 3 midterm elections. Richard Hunter, a broker at Interactive Investor, noted that the shift from a diplomatic to a military approach was enough to drive the immediate price increase.

Regional instability has intensified this week, adding to supply concerns. The Islamic Revolutionary Guards Corps claimed it struck four commercial ships in the Strait of Hormuz on Wednesday. Susannah Streeter, chief investment strategist at Wealth Club, said the strait remains dangerous for maritime traffic due to ongoing projectiles. She also cited the intensified Houthi attacks on Saudi Arabia and Ukraine's bombardment of Russian diesel refineries as additional pressure points on the global energy supply.

The US State Department responded to the rising risk by ordering some diplomats and the families of US government employees to leave Saudi Arabia. The conflict has already caused major price swings this year. Brent crude was trading at approximately $72 per barrel in February, before the war began. By the end of April, tensions had driven the price to $126 per barrel.