Middle East Tensions Threaten to Drive Up Pakistan’s Oil Import Costs

A deepening crisis in the Middle East is raising concerns that Pakistan’s oil import costs could surge sharply, as any escalation involving Saudi Arabia and Iran threatens to tighten global crude supply. Higher benchmark prices for Oil – Brent Crude would strain Pakistan’s external balances and energy subsidies, amplifying existing fiscal and inflationary pressures.

Over the past month, Brent has climbed about 51.9%, signaling a strong upward trend driven by geopolitical risk and potential supply disruptions. The 1-day technical outlook for Brent is currently rated as a Buy, indicating short-term momentum remains bullish, though such rapid gains may increase volatility and headline sensitivity going forward.