Oil prices surge over 3% after new strikes on Saudi Arabia and the Strait of Hormuz
Brent crude jumped $3.21 to $107.82 per barrel and WTI rose $3.17 to $103.22, reflecting heightened geopolitical tension in the Gulf.
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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: OGDC, PPL. Oil & Gas sector stands to gain from higher crude prices – Buy bias on related tickers.
Full Story
Open on Express Tribune## Price Movement
As of 08:40 PKT, Brent crude futures increased by $3.21, or 3.1%, reaching $107.82 a barrel. In parallel, U.S. West Texas Intermediate (WTI) futures climbed $3.17, or 3.2%, to $103.22 a barrel.
## Geopolitical Trigger
The price spike follows fresh strikes targeting Saudi Arabian assets and the strategic Strait of Hormuz, a key chokepoint for global oil shipments. Analysts note that any disruption in the Hormuz corridor can tighten global supply, prompting traders to bid up prices.
## Implications for Pakistan
Higher international oil prices tend to lift the earnings outlook for Pakistan’s listed oil‑and‑gas companies, while also exerting pressure on the domestic economy through increased fuel costs and a weaker PKR. Investors are watching the balance between sectoral gains and broader macro‑economic headwinds.
## Market Outlook
The oil‑and‑gas sector is likely to benefit from the price rally, but the overall market may experience volatility as the geopolitical situation evolves. Traders are advised to monitor developments in the Gulf and any policy response from the Pakistani government regarding fuel subsidies and import bills.