Brent crude climbed 1% on Friday morning to reach $114.72 a barrel. This price represents the highest level for the commodity since May.
Prices have fluctuated significantly recently, rising from approximately $72 a barrel in February to $126 by the end of April. Tehran warned it would target oil facilities, undersea cables, datacentres, and AI facilities in the Gulf region if a new US-Israeli attack against Iran occurs.
The US state department ordered some diplomats and the families of government employees to leave Saudi Arabia. Richard Hunter at the broker Interactive Investor said, "Widespread reports that the US is considering renewed military strikes on Iran after the midterm elections rather than pursuing a diplomatic route was enough for the price to pop, after what many had considered would be a brief conflict is now in its eighth month."
Susannah Streeter, the chief investment strategist at the broker Wealth Club, noted that Houthi rebel attacks on Saudi facilities intensified this week while projectiles continue to threaten ships crossing the strait of Hormuz. Supply concerns are further exacerbated by the bombardment of Russian diesel refineries by Ukraine.
These developments occur ahead of the US elections on 3 November.
