Oil rose to its highest level in more than five months as fears of a further escalation of the Middle East conflict grip energy markets.
Brent crude, the international oil benchmark, rose 1% on Friday morning to exceed $115 a barrel – its highest level since May.
The increase came after Tehran said it would strike oil installations, undersea cables, data centers and AI facilities in the Gulf region if a new US-Israeli attack was launched against Iran.
“Widely reported reports that the United States is considering further military strikes against Iran after the midterm elections rather than pursuing a diplomatic path were enough to push the price higher, after what many saw as a brief conflict is now in its eighth month,” said Richard Hunter of broker Interactive Investor.
Oil traded at around $72 per barrel in February, before the start of the Iran war, but rose to $126 per barrel in late April.
Tensions in the region have increased this week; Iran’s Islamic Revolutionary Guard Corps said it struck four commercial ships in the Strait of Hormuz on Wednesday. The US State Department has ordered some diplomats and families of US government employees to leave Saudi Arabia, which faces continued attacks from Houthi rebels in Yemen.
Susannah Streeter, chief investment strategist at brokerage Wealth Club, said fears were growing that US and Israeli forces would be ordered to launch strikes on Iran’s energy infrastructure after the November 3 US election.
“At the same time, attacks on Saudi facilities by Houthi rebels have intensified this week, and for ships attempting to cross the Strait of Hormuz, the journey remains dangerous, with projectile fire,” she said.
after newsletter promotion
Streeter said Ukraine’s bombing of Russian diesel refineries also added to supply concerns.
Gn headline
