Riaz Hussain
Global oil prices climbed sharply on Monday as escalating tensions in the Middle East heightened fears of disruptions to energy supplies, while stock markets across Asia — including Pakistan — came under renewed pressure.
Brent crude rose by $2.01, or 1.84 per cent, to reach $111.27 per barrel during early trading after touching its highest level since May 5. Meanwhile, US West Texas Intermediate (WTI) crude increased by $2.33, or 2.21pc, to $107.75 a barrel after earlier hitting its strongest level since April 30.
The gains followed growing concerns that diplomatic efforts to ease the Iran conflict had stalled after a drone strike targeted the UAE’s Barakah nuclear power plant. Saudi Arabia also reported intercepting three drones that entered its airspace from Iraq, raising fears of broader regional instability.
Analysts warned that renewed military escalation could threaten Gulf energy infrastructure and further disrupt oil shipments through the strategically important Strait of Hormuz, a vital route for global crude exports.
US President Donald Trump is expected to meet national security advisers to discuss possible military options regarding Iran, according to media reports.
Peshwar based journalist Haq Nawaz Khan told Investors concerns were further intensified after the United States allowed a sanctions waiver on Russian seaborne oil purchases to expire, potentially tightening global supply conditions. He told the more military escalation may threaten a renewed strikes against Iran by the US and Israel military and response by Iran will create more complications in the region. He told both sides US and Iran to give a chance to peace and security in the region,,
“ The rising tension and any military intervention would be a clear warning and can increase escalation options that any renewed strikes on Iran could trigger more proxy assaults on energy facilities in the region ,” professor Dr manzoor Ali told CBN. He told the energy prices may rise in Pakistan with out any other option with the government of Pakistan,,.
Amid the uncertainty, the Pakistan Stock Exchange (PSX) extended its losing streak, with the benchmark KSE-100 index plunging more than 2,500 points during intraday trading. The index dropped 2,507.77 points, or 1.51pc, to 163,088.30 points after closing at 165,596.07 points in the previous session.
Asian markets also remained under pressure, reflecting investor caution over rising geopolitical risks and concerns about global economic stability. Tokyo shares fell 1pc, Hong Kong declined 1.4pc, while Jakarta recorded a sharp 2.7pc drop. Other regional markets, including Sydney, Singapore and Bangkok, also traded lower.
Market analysts expect volatility to persist this week as investors closely monitor developments surrounding US-Iran tensions, oil prices and upcoming economic decisions, including Pakistan’s federal budget announcements.
