Oil prices poised to close above $100 per barrel, first time in four months
Escalating attacks on Middle‑East shipping lanes lifted Brent to $108.68 and WTI to $103.45, pushing weekly gains to nearly 13%, the strongest since mid‑May.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector gains from higher crude prices – Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
Companies
Companies Mentioned
- PPL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Oil & Gas — Positive · Buy bias. PSX tickers: PPL. Oil & Gas sector gains from higher crude prices – Buy bias on related tickers.
Full Story
Open on Business Recorder## Price Movement
Brent crude futures rose 1% to $108.68 a barrel by 0045 GMT on Friday, while U.S. West Texas Intermediate (WTI) increased 1% to $103.45. Both benchmarks had surged over 6% on Thursday, putting them on track to end the week above the $100 mark for the first time since mid‑May.
## Geopolitical Drivers
The rally is being driven by a series of attacks on key shipping routes in the Middle East. The Houthi rebels seized Yemen’s port of Mocha, threatening Red Sea traffic, while tanker activity in the Strait of Hormuz remains restricted. Iranian forces also reported attacks on ten vessels near the strait, and the U.S. has responded with strikes on Iranian tankers, heightening the risk of prolonged supply disruptions.
## Market Reaction
Analysts note that the durability of the price surge will depend on demand from China, the world’s largest crude importer. Continued Chinese buying could amplify the impact of supply constraints and push prices higher. Meanwhile, OPEC has lowered its 2026 oil‑demand growth forecast to 380,000 barrels per day and reported a 640,000‑bpd drop in output for August, underscoring a tightening market.
## Domestic Implications
Higher global oil prices translate into increased earnings potential for Pakistan’s listed oil and gas companies. The rise also raises the cost of diesel and gasoline domestically, which could affect inflation and consumer spending.
## Outlook
With geopolitical tensions persisting and demand from major importers remaining strong, oil prices are likely to stay elevated in the near term, supporting the profitability of local upstream firms.