Oil Prices Spike on Gulf Threats

Energy markets saw their steepest one-day gain in six months on Friday.

Brent crude, the global benchmark for oil pricing, jumped 3.5 percent during trading. The price briefly broke above $117 per barrel, the highest level since April. By the close of business, the price had pulled back slightly but settled just above $116, representing a 2.7 percent increase from the previous day.

The surge followed new statements from Tehran regarding potential military responses. Iranian officials said they would target Gulf-based oil facilities, undersea cables, data centers, and artificial intelligence infrastructure if a new joint US-Israeli offensive begins. Richard Hunter, a broker at Interactive Investor, attributed the price spike to reports that the United States is weighing renewed strikes on Iran. He noted that these plans appear timed for after the midterm elections, signaling a move away from diplomacy.

Tensions in the region have escalated throughout the week. On Wednesday, the Islamic Revolutionary Guards Corps claimed strikes on four commercial ships in the Strait of Hormuz. This narrow waterway is a critical route for global oil shipments. In reaction to the instability, the US State Department ordered some diplomats and their families to leave Saudi Arabia. The kingdom has faced ongoing attacks from Houthi rebels in Yemen, adding another layer of risk to the region.

Susannah Streeter, chief investment strategist at Wealth Club, warned that fears are growing that American and Israeli forces may target Iran’s energy infrastructure after the November 3 elections. She cited intensified Houthi attacks on Saudi facilities and noted that projectiles are still being fired at maritime traffic in the Strait of Hormuz. Streeter also pointed to Ukraine’s bombardment of Russian diesel refineries as an additional factor pressuring global supply chains.

The current prices stand in sharp contrast to earlier this year. Before the war with Iran began in February, Brent crude traded at approximately $72 per barrel. By the end of April, the price had touched $126. The conflict is now entering its eighth month, keeping costs elevated for consumers and businesses worldwide.