Oil has hit its highest level in more than five months as fears of fresh escalation in the Middle East conflict grip the energy markets.

Brent crude, the international benchmark for oil, rose by 1% on Friday morning to $114.72 a barrel – its highest level since May.

The increase came after Tehran said it would strike oil facilities, undersea cables, datacentres and AI facilities in the Gulf region if a new US-Israeli attack was launched against Iran .

“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,” said Richard Hunter at the broker Interactive Investor.

Oil had traded at about $72 a barrel back in February, before the Iran war began, but soared to $126 a barrel by the end of April.

Tensions in the region have been rising this week; Iran’s Islamic Revolutionary Guards Corps claimed to have…