Escalating tensions between the United States and Iran pushed global oil prices soaring above $87 a barrel on Friday, while stock markets across major economies came under pressure as investors grew increasingly cautious over the risk of a broader Middle East conflict.
Brent crude futures rose $3.10, or 3.68pc, to $87.33 per barrel, marking their highest level in several months. US West Texas Intermediate (WTI) crude climbed $3.14, or 3.98pc, to $82.09 per barrel.
Other benchmark grades also posted strong gains. Murban crude advanced 3.91pc to $80.77 per barrel, while WTI Midland rose 3.10pc to $81.81, as traders priced in mounting geopolitical risks.
The rally extended across the broader energy complex, with US gasoline futures rising 3.86pc, Dutch TTF natural gas gaining 3.41pc, US natural gas increasing 1.01pc, and the Japan-Korea LNG benchmark advancing 0.92pc.
Market sentiment was shaken by fresh US military strikes on Iran and Tehran’s retaliatory attacks on US military installations in Gulf countries and Syria, raising fears of a wider regional conflict and potential disruptions to global energy supplies.
Investors are particularly concerned about the security of the Strait of Hormuz, a vital shipping route through which nearly one-fifth of the world’s crude oil trade passes. Any disruption to traffic through the strategic waterway could significantly impact global oil and gas supplies.
The sharp rise in oil prices has also heightened concerns about inflationary pressures in Pakistan, where higher energy costs could intensify price inflation and place additional strain on the country’s public finances and the rupee.
Global financial markets reflected the heightened uncertainty as investors shifted away from equities toward traditional safe-haven assets.
Wall Street opened lower, with technology and growth stocks leading declines. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all traded in negative territory as investors assessed the geopolitical risks and their potential impact on the global economy.
