Oil Prices Stay High As Iran Tensions Persist

ISLAMABAD: (Web Desk) – Oil prices remained near four-year highs on Thursday while global stock markets slipped, as tensions between the United States and Iran showed no signs of easing. President Donald Trump warned that the US blockade of Iranian ports could continue for months, dampening hopes for a quick diplomatic resolution.

Although Tehran recently proposed reopening the Strait of Hormuz—a vital route for global energy supplies—Washington has expressed skepticism about Iran’s intentions. Reports suggest Trump has instructed officials to prepare for a prolonged blockade aimed at pressuring Iran to curb its nuclear programme.

Crude prices surged as fears grew over extended disruptions in oil flows. Brent crude hovered near $120 per barrel, while West Texas Intermediate traded above $108, levels not seen since the global energy shock following the Ukraine conflict in 2022. Analysts warn that if tensions escalate further, prices could climb even higher.

Global equity markets reacted negatively, with major indices across Asia, including Tokyo and Hong Kong, posting losses. Investors shifted toward safer assets like the US dollar amid uncertainty. However, some optimism remained in tech sectors, supported by strong earnings from companies like Microsoft, Meta Platforms, and Alphabet Inc., driven by continued growth in artificial intelligence.

Meanwhile, geopolitical tensions extended beyond the Gulf. Russian President Vladimir Putin cautioned against renewed military escalation, warning of severe global consequences. In the Middle East, clashes involving Hezbollah and Israel have continued despite a fragile ceasefire, adding further pressure to the region.

Massive fire engulfs Islamabad cotton factory, causing damage

Experts caution that prolonged high energy prices could ripple through global economies, increasing inflation and impacting central bank policies. With diplomatic efforts stalled and risks mounting, markets remain highly sensitive to developments in the conflict.