Oil Prices Surge on Escalating US‑Iran Tensions
Brent and WTI crude climbed sharply amid renewed US‑Iran clashes, marking the steepest weekly gain since July and boosting the Oil & Gas sector on the PSX.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil price rise benefits the Oil & Gas sector; buy bias for listed companies in that sector.
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, PSO, SNGP, ATRL. Oil price rise benefits the Oil & Gas sector; buy bias for listed companies in that sector.
Full Story
Open on ARY News## Background
Oil markets reacted strongly to the latest flare‑up in the Middle East, with Brent crude futures rising 54 cents to $96.06 a barrel and West Texas Intermediate (WTI) climbing 80 cents to $92.10 a barrel. The gains represent the largest weekly increase for both benchmarks since the week ending 20 July.
## Drivers of the Rally
The price surge is largely driven by heightened geopolitical risk. Recent U.S. attacks on Iranian targets, which resulted in civilian casualties, have intensified fears of a broader conflict that could disrupt oil supply routes, especially through the Strait of Hormuz. Israeli Defence Minister Israel Katz has warned that Israel will “cripple” Iran’s military and civilian infrastructure, adding further pressure on the market.
## Market Outlook
ANZ analysts have lifted their short‑term Brent forecast to $95 a barrel, citing upside risk if the Middle East conflict escalates. They note that while elevated inventories have absorbed the initial shock, diminishing buffers could keep the market in a delicate balance.
## Geopolitical Developments
U.S. Vice President J.D. Vance stated that Washington will not engage in talks with Iran unless the country stops attacking commercial shipping in the Strait of Hormuz. Meanwhile, Russian President Vladimir Putin suggested a path to a Ukraine peace deal, indicating that global geopolitical dynamics remain fluid.
## Impact on Oil Exports
Iran has expanded its list of vessels deemed non‑compliant in the Hormuz region, while Iraq has cleared a limited number of ships to pass through. Iraqi oil exports rose to approximately 2.34 million barrels per day in August, up from 1.35 million in July, with further increases expected in September.
## Implications for PSX
The rally in oil prices is likely to benefit Pakistani listed Oil & Gas companies, as higher global prices can translate into improved margins and earnings for upstream and downstream firms. No specific tickers are singled out, but the sector as a whole stands to gain.