Oil prices rose again on Tuesday as renewed fighting between the United States and Iran revived concerns about supply disruption in the Gulf (Express Tribune; Trading Economics).
The moves
Both benchmarks are up, and both sit above the levels they held before the weekend’s strikes:
– Brent crude: quoted at $91.54 a barrel (up $1.05, or 1.2%) by Reuters via the Express Tribune; $91.28 (up 0.87%) on Trading Economics – WTI: $87.03 (up $1.27, or 1.5%) by the same Reuters quote; $86.57 (up 0.94%) on Trading Economics
The two sets of figures are intraday snapshots taken at different moments of a moving session, not a disagreement about the price. The reliable statement is that Brent is above $91 and WTI above $86, both up around 1% on the day.
Why
Tim Waterer, chief market analyst at KCM, said the strikes “bring the potential for Iranian retaliation back into the equation. That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz.”
US forces struck two Iranian rocket launchers on Larak Island at the weekend; Tehran responded with attacks on Jordan and the UAE. President Donald Trump has since extended his threats to Kharg Island, Iran’s principal oil export terminal — an escalation of a different order, since Kharg handles the overwhelming majority of Iranian crude exports.
The shipping signal
The clearest measure of disruption is not the price but the traffic. Shipping data shows about five commodity vessels transiting Hormuz daily, against a 10-day average of roughly 14. Vessels are staying out.
Iranian state media reported that a supertanker caught fire after striking two naval mines in the southern part of the strait. That account rests on Iranian state media alone and has not been independently corroborated; it is reported here as a claim, not an established fact.
What it means for Pakistan
Pakistan imports the bulk of its crude and refined product through Hormuz and pays in dollars. Under the daily pricing mechanism in force since 21 July, international movements feed into the pump price within days rather than fortnightly.
The effect is already visible: in the revision effective today, petrol rose 77 paise to Rs342.79 a litre, while high-speed diesel fell Rs1.03 to Rs370.41 — the two moving in opposite directions because the levy and exchange-rate components differ between the products.
A sustained Brent move above $90 pushes both. The variable to watch is not the current price but whether the strait stays open.
[Image: Reuters via Express Tribune]
