Oil Surges Above $87 as U.S.-Iran Tensions Weigh on Global Markets
ISLAMABAD:Global oil prices climbed sharply above **$87 per barrel** while stock markets around the world came under pressure as escalating tensions between the United States and Iran heightened concerns over energy supplies and regional stability.
On Friday, **Brent crude** rose **3.68%**, gaining **$3.10** to reach **$87.33 per barrel**, its highest level in several months. Meanwhile, **U.S. West Texas Intermediate (WTI)** crude increased **3.98%**, or **$3.14**, to **$82.09 per barrel**.
Other benchmark crude grades also posted gains, with **Murban crude** rising **3.91%** to **$80.77 per barrel** and **WTI Midland** advancing **3.10%** to **$81.81 per barrel**, reflecting growing geopolitical risk premiums.
The rally extended across the energy sector, with **U.S. gasoline futures** climbing **3.86%**, **Dutch TTF natural gas** rising **3.41%**, **U.S. natural gas** gaining **1.01%**, and the **Japan-Korea LNG benchmark** increasing **0.92%**.
Market sentiment was driven by fears that any disruption to shipping through the **Strait of Hormuz**—a key route for roughly one-fifth of the world’s crude oil trade—could significantly affect global energy supplies.
The spike in oil prices triggered a broader sell-off in global equity markets as investors shifted away from riskier assets toward traditional safe havens.
On Wall Street, the **S&P 500**, **Nasdaq Composite**, and **Dow Jones Industrial Average** all opened lower, led by declines in technology and growth stocks. However, shares of major energy companies outperformed as higher crude prices improved earnings expectations.
European markets also weakened, with Germany’s **DAX** and France’s **CAC 40** falling on concerns that rising energy costs could slow the region’s fragile economic recovery. Britain’s **FTSE 100** proved more resilient, supported by gains in oil giants such as Shell and BP.
Across Asia, Japan’s **Nikkei 225**, South Korea’s **KOSPI**, and major Chinese stock indexes also declined as investors assessed the economic impact of higher energy prices and increasing geopolitical uncertainty.
In Pakistan, analysts warned that sustained crude oil prices near **$90 per barrel** could significantly increase the country’s import bill, widen the current account deficit, accelerate inflation, and place additional pressure on the Pakistani rupee and public finances.
The **Pakistan Stock Exchange (PSX)** also faced selling pressure as investors evaluated the potential impact of rising oil prices on the country’s external accounts.
Market analysts believe volatility is likely to persist until there is greater clarity on whether the conflict remains contained or escalates into a broader regional confrontation that could further disrupt global energy supplies.
