Oil Prices Surge as Middle East Tensions Escalate; Brent Crude Hits One-Month High Above $115 per Barrel

Global oil prices continued their sharp upward trajectory Wednesday, with Brent crude futures climbing above $115 per barrel, the highest level in about a month and the strongest close since June 2022, as uncertainty over supply disruptions in the Strait of Hormuz deepened amid stalled U.S.-Iran peace talks.

Brent futures rose nearly 3% intraday, trading as high as $115.43 before settling around $114–115, extending gains for an eighth consecutive session. West Texas Intermediate (WTI) crude also advanced, hovering near $103 per barrel.

“Physical oil is trading at significant premiums,” one market participant noted, highlighting backwardation in futures curves that signals near-term tightness.

The surge is rippling across economies, pushing up costs for transportation, manufacturing, and consumer goods. Energy stocks gained while broader equities showed caution over potential inflation and growth headwinds.

For Pakistan, already grappling with high import bills, the news exacerbates pressure on fuel prices and the current account. The government has implemented multiple sharp hikes in recent weeks, with petrol and diesel prices rising significantly since early April due to the global spike. Further adjustments could be expected in the coming review as international benchmarks remain elevated.

Markets will now watch closely for any developments on U.S.-Iran negotiations, naval activity in the Gulf, or fresh statements from OPEC+ members.