Brent crude settles above $116 as Iran targets Gulf infrastructure

Brent crude, the global pricing standard for oil, ended trading Friday at just over $116 per barrel.

The price jumped roughly 3.5 percent during the session, briefly crossing the $117 mark. This level marks the highest point for the benchmark since April. The stock settled more than 2.7 percent above the previous day's close.

The spike followed warnings from Iranian officials regarding potential retaliation. Tehran stated that if a new joint US-Israeli offensive occurred, the country would target oil facilities, undersea cables, data centers, and artificial intelligence infrastructure in the Gulf region.

Market participants reacted to reports that the United States is weighing renewed military strikes on Iran. These plans appear to be timed for the period following the US midterm elections. Richard Hunter, a broker at Interactive Investor, said this shift from diplomacy to potential force was enough to trigger the price rise. He noted that the conflict is now entering its eighth month, a duration that exceeds initial expectations.

The conflict has driven up costs for consumers and businesses globally since February. At the start of the war, Brent crude traded at approximately $72 per barrel. By the end of April, tensions had pushed the price to $126 per barrel.

Tensions in the region intensified earlier in the week. The Islamic Revolutionary Guards Corps claimed to have struck four commercial ships in the Strait of Hormuz on Wednesday. This waterway is a critical chokepoint for global oil shipments. Susannah Streeter, chief investment strategist at Wealth Club, said that projectiles are still being fired at maritime traffic, making the passage dangerous for ships.

The US State Department ordered some diplomats and their families to leave Saudi Arabia. The kingdom has faced continued attacks from Houthi rebels based in Yemen. Streeter noted that these attacks have intensified this week, adding to the supply concerns. She also pointed to Ukraine's bombardment of Russian diesel refineries as another factor pressuring the global energy market.