Oil prices surge over 2% after fresh Houthi strikes on Saudi Arabia and incident in Strait of Hormuz
Brent and WTI crude jumped more than 2% on Monday as new Houthi attacks on Saudi infrastructure and a vessel hit in the Strait of Hormuz heightened supply worries, following the recent shutdown of Saudi Arabia’s East‑West pipeline.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Higher crude prices lift Oil & Gas sector earnings, creating a Buy bias for related PSX 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, HUBC, PPL. Higher crude prices lift Oil & Gas sector earnings, creating a Buy bias for related PSX tickers.
Full Story
Open on ARY News## Price movement
Oil markets rallied on Monday, with Brent crude futures climbing $2.90 to $107.51 per barrel (+2.77%) and U.S. WTI futures up $2.27 to $102.32 per barrel (+2.27%). The gains followed an opening surge of over 3% as traders priced in fresh geopolitical risks.
## Geopolitical triggers
- Saudi Arabia: State media released footage showing damage to homes and a mosque in Jazan province after a Houthi attack. The Houthis also claimed to have hit a Saudi military base in a neighbouring province. - Strait of Hormuz: The UK Maritime Trade Operations (UKMTO) reported that a vessel was struck by a projectile, igniting a fire and prompting crew evacuation. - Iran: Iranian authorities confirmed one fatality and four injuries on an Iranian commercial ship hit off its coast. - Pipeline outage: Saudi Arabia’s East‑West oil pipeline, which bypasses the Strait of Hormuz, was taken offline on Friday after a drone strike originating from Iraq, potentially removing up to 4% of global oil supply. - Bab el‑Mandeb: Yemen’s Houthis reached Perim Island, aiming to tighten control over the Bab el‑Mandeb Strait, another key transit lane handling 4‑5% of world oil flows.
## Market commentary
IG market analyst Tony Sycamore warned that unless talks in Oman produce a concrete outcome or the East‑West pipeline is quickly restored, crude could keep climbing toward the early‑March high of $119.48 per barrel.
## Diplomatic backdrop
Omani Foreign Minister Badr Albusaidi announced on X that a scheduled meeting in Oman between Gulf states and Iran to discuss the Strait of Hormuz had been postponed, leaving diplomatic avenues unresolved.
## Weekly context
The disruptions have pushed oil prices up 8% for the week, taking Brent above the $100 mark for the first time since July.
## Implications for Pakistan
Higher global oil prices raise import costs for Pakistan, pressuring the current account and the PKR. Conversely, domestic oil‑and‑gas producers stand to benefit from stronger crude benchmarks, potentially boosting earnings and dividend prospects for listed companies.