Overview
- Brent crude climbed above $100 a barrel after attacks on two Saudi tankers in the Red Sea reopened a second major route risk for Middle East oil, touching about $102 during the trading day.
- Markets reacted sharply with U.S. stocks falling, long‑term yields rising and forecasters warning the oil shock will add to inflationary pressure and increase the likelihood of central bank rate moves.
- Pakistan shifted to a daily pricing system run by the Oil and Gas Regulatory Authority and issued back‑to‑back petrol and diesel hikes, while petrol‑pump owners postponed a planned nationwide strike after talks with the petroleum minister.
- Drivers are already feeling the impact: U.S. gasoline averages rose above $4 per gallon, UK forecourt prices have climbed toward mid‑150s pence per litre for petrol and analysts warn that sustained crude at current levels could push Pakistan pump prices above Rs400 per litre.
- Key variables to watch are the security of the Strait of Hormuz and Bab el‑Mandeb/Red Sea shipping lanes, the pace of further Houthi or Iran‑linked attacks, and whether depleted global oil buffers force longer‑lasting supply constraints.