Gulf States Cancel Iran Meeting as Houthis Attack Saudi; Oil Supply Risks Rise
Arab Gulf states postponed a planned Iran summit while Yemen’s Houthis struck a Saudi airbase and disrupted a key east‑west oil pipeline, pushing Brent crude above $109 a barrel and heightening concerns over global oil supply.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Oil & Gas and Power sectors face heightened risk from supply disruptions and price volatility, so avoid buying related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- PowerNegatively affected
Companies
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Sectors: Oil & Gas, Power — Negative · Do not buy. PSX tickers: OGDC, PPL. Oil & Gas and Power sectors face heightened risk from supply disruptions and price volatility, so avoid buying related stocks.
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Open on Business Recorder## Gulf States Postpone Iran Summit
On Monday, the Gulf Cooperation Council (GCC) states called off a meeting with Iran that was to be hosted by Oman. Oman’s Foreign Minister Sayyid Badr Albusaidi said the postponement was made “in the interests of consensus,” and Iran confirmed the delay was at Saudi Arabia’s request. The gathering was intended to discuss reopening the Strait of Hormuz, a vital oil shipping lane that has been partially blocked since the U.S. and Israel attacks on Iran in February.
## Houthis Escalate Attacks on Saudi Arabia
The Yemen‑based Houthi movement launched a fresh missile and drone assault on the Khamis Mushait airbase in southern Saudi Arabia, targeting aircraft hangars, radar installations, runways and ammunition depots. The group said the strike was retaliation for recent Saudi airstrikes in Yemen. Saudi authorities issued emergency alerts in four southern cities.
## Disruption of Saudi East‑West Pipeline
In a separate incident blamed on the Houthis, Saudi Arabia’s east‑west pipeline – the main conduit for oil bypassing the Hormuz choke point – was knocked out. Traders warned that a prolonged shutdown could remove up to 4% of global oil supply. Satellite images showed sections of the pipeline damaged by fire.
## Oil Prices Surge
Following the developments, Brent crude futures rose more than 4%, trading above $109 per barrel, while U.S. diesel prices hit a record high of $6.23 per gallon. Market participants noted that any sustained interruption of the Saudi pipeline or further escalation in the Red Sea could tighten global supplies further.
## Regional and International Reactions
Iran released a list of 77 vessels it claims violated Hormuz protocols, threatening fines, detention or confiscation. The United States noted an increase in covert ship transits through the strait with U.S. support. Meanwhile, Saudi Crown Prince Mohammed bin Salman met U.S. regional commander Admiral Brad Cooper in Jeddah, but Washington has so far limited its involvement to intelligence sharing.
## Implications for Pakistan
Higher crude prices and supply uncertainties can affect Pakistan’s import bill, foreign exchange reserves and inflation, while also influencing the earnings of domestic oil‑and‑gas producers and power generators that are sensitive to fuel cost fluctuations.