Oil climbs to six‑week high after Houthi attacks on Saudi energy sites
Brent and WTI crude surged as Houthi strikes on Saudi facilities heightened geopolitical risk and tightened global oil supplies.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Higher oil prices boost Oil & Gas sector earnings, creating a Buy bias for related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
- PowerPositively affected
- FertilizerPositively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas, Power, Fertilizer — Positive · Buy bias. PSX tickers: OGDC, PPL. Higher oil prices boost Oil & Gas sector earnings, creating a Buy bias for related tickers.
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Open on ARY News## Geopolitical trigger
On Tuesday, Houthi militants in Yemen launched attacks on four Saudi Arabian cities, setting oil installations ablaze and injuring more than 70 people. The strikes represent one of the most significant assaults on Saudi energy infrastructure since the conflict began six months ago and raise the prospect of a broader escalation in the Middle East.
## Market reaction
At 10:56 a.m. EDT, Brent crude futures rose 70 cents (0.7%) to $97.70 per barrel, while U.S. West Texas Intermediate (WTI) climbed $1.21 (1.3%) to $92.69 per barrel. Both benchmarks are on track for their highest daily closes since July 23 (Brent) and June 4 (WTI).
## Supply constraints
The attacks come amid already strained Gulf oil exports, which have been hampered since Iran targeted regional energy infrastructure and the Strait of Hormuz saw reduced tanker traffic after joint U.S.–Israel strikes in February. Saudi Arabia, the world’s second‑largest crude producer, has been routing oil westward to the Red Sea to bypass the strait, but the new attacks could further disrupt flows.
## Analyst view
Tim Waterer, chief market analyst at KCM Trade, said the price move reflects genuine physical tightness—tanker volumes through Hormuz remain well below normal—and a pronounced geopolitical risk premium that is now driving most of the price gain.
## Outlook
Goldman Sachs and HSBC have lifted their crude price forecasts for 2026‑2027, anticipating continued shipping disruptions. Global fuel prices remain elevated due to refinery outages in the Middle East and Russia, with diesel and gasoline prices hitting record levels in the United States.
## Wider implications
China’s crude imports fell 23.4% year‑on‑year in August, while the country has limited refined product exports to protect domestic supply. In the U.S., President Donald Trump called Russian President Vladimir Putin to urge a swift end to the war in Ukraine, though the conflict’s impact on oil markets persists.
## Regional security
Germany announced the deployment of Patriot air‑defence missiles to Ukraine, signalling heightened tension that could affect European energy demand and further reinforce the risk premium on oil.
Overall, the heightened geopolitical risk and physical supply constraints are pushing oil prices higher, which is likely to benefit Pakistan’s oil‑and‑gas sector and related industries.