Oil prices extend gains as US and Iran trade fresh strikes
Brent crude futures climbed to $95.68 a barrel, up 1.1%, after renewed US‑Iran hostilities, lifting expectations for higher oil revenues.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector stands to gain from higher Brent prices, creating a buy bias for related tickers.
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, MARI. Oil & Gas sector stands to gain from higher Brent prices, creating a buy bias for related tickers.
Full Story
Open on Express Tribune## Market Move
Brent crude futures rose by $1.03, or 1.1%, reaching $95.68 per barrel on Tuesday. The increase followed fresh military exchanges between the United States and Iran, which reignited concerns over supply disruptions in the Gulf.
## Geopolitical Context
The latest strikes marked a sharp escalation in the long‑standing US‑Iran rivalry. Analysts warned that any prolonged tension in the Strait of Hormuz—a critical chokepoint for global oil shipments—could tighten global supply and keep oil prices elevated.
## Implications for Pakistan
Higher international oil prices translate into greater earnings potential for Pakistan’s listed oil‑and‑gas firms, which sell a significant portion of their output at market‑linked prices. The rise also puts upward pressure on the Pakistani rupee and inflation, but the immediate effect on the equities of oil producers is broadly positive.
## Sector Outlook
Investors are likely to see improved profit forecasts for companies such as Oil and Gas Development Company Ltd (OGDC), Pakistan Petroleum Ltd (PPL), and Mari Petroleum Ltd (MARI). These firms benefit directly from higher Brent benchmarks, which serve as reference prices for many of their contracts.
## Market Sentiment
While the broader market may react to currency and inflation concerns, the oil‑and‑gas segment is expected to enjoy a short‑term rally as traders price in the higher crude environment.