Brent Holds Above $100 as Iran‑US Shipping Attacks Heighten Supply Fears
Brent crude stayed above the $100 mark after renewed Iran‑US attacks on tankers, keeping oil prices buoyant and signaling upside for Pakistan’s oil‑and‑gas companies.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector gains from higher Brent prices; Buy bias on OGDC and PPL.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas — Positive · Buy bias. PSX tickers: OGDC, PPL. Oil & Gas sector gains from higher Brent prices; Buy bias on OGDC and PPL.
Full Story
Open on Profit## Market Overview
On Thursday, Brent crude futures slipped 0.7% to $100.50 a barrel by 0619 GMT, while U.S. West Texas Intermediate (WTI) fell 0.5% to $95.58. Despite the modest dip, Brent remained firmly above the psychologically important $100 level.
## Geopolitical Trigger
The price resilience stems from escalating maritime security concerns after Iran and the United States launched their largest coordinated attacks on commercial shipping since the conflict began six months ago. The attacks have revived fears of tighter global oil supply, especially through the Strait of Hormuz, a key chokepoint for crude exports.
## Price Momentum
Since early August, Brent has rallied nearly 30% from its lows, driven by the absence of a permanent cease‑fire agreement between Tehran and Washington and the resumption of hostilities later in the month. Traders anticipate that any further disruptions could push prices even higher.
## Implications for Pakistan
Higher international oil prices translate into stronger revenue prospects for Pakistan’s listed oil‑and‑gas firms, which benefit from elevated export earnings and improved cash flows. Companies with upstream exposure, such as Oil and Gas Development Company Ltd (OGDC) and Pakistan Petroleum Ltd (PPL), are likely to see their earnings outlook upgraded.
## Outlook
Analysts expect the Brent price to stay near the $100 barrier as long as the geopolitical tension persists. Any de‑escalation or a durable shipping‑safety pact could reverse the upward bias.
## Shariah Consideration
Both OGDC and PPL operate within Shariah‑compliant frameworks, and the price uplift aligns with the interests of Shariah‑conscious investors seeking exposure to the oil sector.