Iranian officials target Gulf data centers as oil hits $117

Brent crude climbed to its highest level in six months on Friday as Iranian officials named new targets for potential retaliation. The conflict has entered its eighth month, and the threat of expanded attacks has driven up global energy costs.

Prices surged by 3.5% during trading, briefly exceeding $117 per barrel. The benchmark oil settled at just over $116, a gain of more than 2.7% from the previous close. This marks the highest price point since April.

Tehran stated that a new joint US-Israeli offensive would trigger strikes on specific Gulf assets. Iranian officials listed oil facilities, undersea cables, data centers, and artificial intelligence infrastructure as primary targets. Broker Richard Hunter of Interactive Investor said this shift away from diplomacy caused the immediate price spike.

The regional tension escalated further on Wednesday when Iran’s Islamic Revolutionary Guards Corps claimed attacks on four commercial ships. These vessels were hit in the Strait of Hormuz, a key route for global oil shipments. The US State Department subsequently ordered some diplomats and employee families to leave Saudi Arabia.

Context from earlier in the year shows the scale of the price increase. In February, before the war began, Brent crude traded at approximately $72. By the end of April, prices had touched $126. Susannah Streeter of Wealth Club noted that fears are rising that US and Israeli forces may target Iran’s energy sector after the November 3 elections.

Additional pressure on supply comes from Ukraine’s bombardment of Russian diesel refineries. Streeter added that Houthi rebels in Yemen have intensified attacks on Saudi facilities this week. These combined factors keep the Strait of Hormuz dangerous for maritime traffic despite the recent price fluctuations.