Rising US-Iran tensions push Brent crude above $100 a barrel, raising concerns over Middle East supply disruptions and higher fuel costs in Pakistan.
Oil prices rose sharply on Wednesday, with international benchmark Brent crude futures climbing above $100 a barrel for the first time since July, as escalating tensions between the United States and Iran heightened concerns over disruptions to energy supplies from the Middle East.
Brent crude futures were last trading 2.57% higher at $100.44 a barrel as of 5:11 a.m. ET.
US benchmark West Texas Intermediate (WTI) futures for November delivery also advanced, rising 2.03% to $94.92 a barrel.
Middle East tensions drive oil prices higher
The latest surge in crude prices comes amid growing tensions between the US and Iran, raising concerns that further geopolitical escalation could affect oil production, exports and shipping routes in the Middle East.
The region remains a critical source of global energy supplies, meaning any significant disruption could place further upward pressure on international crude prices.
Higher oil prices pose risks for Pakistan
The rise in international oil prices could create additional economic pressure for Pakistani consumers, with petrol and diesel prices already at relatively high levels.
A sustained increase in global crude prices could lead to higher domestic fuel prices, adding to transportation and production costs across the economy.
Higher petroleum prices could also contribute to increased electricity generation costs and inflation, putting further pressure on household budgets and businesses.
For Pakistan, where energy costs have a significant impact on the wider economy, continued volatility in international oil markets could therefore create additional challenges for inflation and economic stability.
Global oil market remains sensitive to geopolitical risks
The move by Brent above the $100 mark highlights the growing sensitivity of global energy markets to geopolitical developments.
Further escalation in US-Iran tensions could increase concerns over supply disruptions and keep crude prices elevated, particularly if the situation threatens major oil-producing or oil-exporting routes in the region.