Oil hits five-month high as US-Iran tensions escalate

Oil prices reached a five-month high on Friday, with Brent crude rising 1% to $114.72 a barrel, amid fears the US will renew military strikes on Iran following Tehran's threats of retaliatory attacks on Gulf oil and tech facilities. The price surge came after Iran warned it would target oil facilities, undersea cables, datacentres and AI infrastructure in the Gulf if a new US-Israeli attack was launched. Tensions have escalated this week, with Iran's Revolutionary Guards claiming strikes on four commercial ships in the Strait of Hormuz, while the US ordered some diplomats to leave Saudi Arabia amid continued Houthi rebel attacks. Oil traded at about $72 a barrel in February before the Iran war began, but soared to $126 by late April. Analysts note Ukraine's bombardment of Russian diesel refineries is also adding to supply concerns, with the conflict now in its eighth month.