Oil Prices Poised for Steepest Weekly Gain Since Mid‑July Amid Rising US‑Iran Tensions
Brent and WTI crude surged to six‑week highs, posting weekly gains of 7.6% and 10.4% respectively as US‑Iran clashes heightened Middle‑East supply risk.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector stands to gain from higher crude prices – Buy bias on 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: PPL, OGDC. Oil & Gas sector stands to gain from higher crude prices – Buy bias on related tickers.
Full Story
Open on Business Recorder## Market Move
Oil markets rallied on Friday, with Brent crude futures climbing 54 cents to $96.06 a barrel and U.S. West Texas Intermediate (WTI) up 80 cents to $92.10. On a weekly basis Brent posted a 7.6% rise and WTI a 10.4% increase, the strongest weekly performance since the week ending 20 July.
## Geopolitical Trigger
The rally is driven by intensifying hostilities between the United States and Iran. Recent US strikes that caused dozens of casualties, including Iranian civilians, represent the fiercest clashes since July. Israeli Defence Minister Israel Katz warned of further actions to cripple Iran’s energy infrastructure, while Tehran expanded its list of vessels subject to fines or detention in the Strait of Hormuz.
## Supply‑Risk Narrative
Analysts note that while elevated global inventories have so far absorbed the initial shock, dwindling buffers could tighten the market if tensions persist. ANZ raised its short‑term Brent forecast to $95 a barrel, citing upside risk from a deeper Middle‑East conflict.
## Regional Oil Flow
Iraq, a key regional supplier, lifted its exports to about 2.34 million barrels per day in August, up from 1.35 million bpd in July, and expects further increases in September as discounts and Iranian clearances attract buyers.
## Outlook for Pakistan
Higher crude prices benefit Pakistan’s oil‑and‑gas sector, boosting revenue expectations for listed exporters and service providers. Investors should monitor any escalation that could further lift prices, as well as potential policy responses that might affect domestic fuel subsidies.