Oil prices surge 4% on renewed US‑Iran tensions
Brent and WTI crude jumped to one‑week highs after fresh US air strikes on Iran, reviving fears of supply disruptions in the Middle East.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector likely to see higher earnings, prompting a Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
- PowerPositively affected
- CementPositively affected
- TransportPositively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas, Power, Cement, Transport — Positive · Buy bias. PSX tickers: OGDC, PPL. Oil & Gas sector likely to see higher earnings, prompting a Buy bias on related tickers.
Full Story
Open on Dawn## Market Move
Oil prices climbed sharply on Tuesday, with Brent futures gaining $3.44 (3.8%) to $93.93 a barrel and US West Texas Intermediate rising $3.72 (4.3%) to $89.48. Both benchmarks reached their highest closing levels since August 20 (Brent) and July 23 (WTI).
## Trigger
The rally was sparked by a renewed round of US air strikes on Iranian targets, ending a brief lull after the weekend’s exchange of fire. The strikes revived concerns that the conflict could expand and that Iran might further restrict oil exports through the Strait of Hormuz, a key global shipping lane.
## Supply Concerns
Earlier reports of two tankers being hit while transiting the Strait of Hormuz added to the supply‑risk narrative. Tehran warned it would block Gulf oil shipments, while US officials signalled possible new sanctions.
## Downstream Impact
Higher crude prices have already pushed diesel futures in the United States to a 52‑month high, lifting the diesel crack spread to a record near $106 a barrel. Similar pressure on refining margins is expected in other regions, including Pakistan.
## Implications for Pakistan
The surge in global oil prices is likely to benefit Pakistan’s listed oil‑and‑gas producers through higher revenue, while raising input costs for energy‑intensive sectors such as power generation, cement and transport.
## Outlook
Investors should monitor further developments in the US‑Iran confrontation and any policy response from Washington, as additional escalation could keep oil prices elevated.