Oil Surges Stocks Fall As Middle East Crisis Deepens

ISLAMABAD: (Web Desk) – Global markets faced renewed turbulence on Monday as oil prices surged and stocks declined sharply amid escalating tensions in the Middle East. The situation intensified after the involvement of Yemen’s Houthi rebels in the ongoing conflict involving Iran and Israel.

The Houthis claimed they launched cruise missiles and drone attacks targeting strategic sites, raising fears that the conflict could spread further, particularly toward the Red Sea. Concerns have grown over disruptions to global shipping routes, especially around the Bab al-Mandab Strait and the Strait of Hormuz—key arteries for global energy trade.

In response to the risks, Saudi Arabia has rerouted some of its oil exports to avoid the Strait of Hormuz, which typically handles around 20% of global oil and gas shipments and is currently facing major disruption.

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Oil prices climbed sharply, with Brent crude nearing $117 per barrel, reflecting fears of supply shortages. The rally was further fueled by comments from Donald Trump, who suggested the United States could seize Iran’s key oil hub at Kharg Island, signaling the possibility of deeper military involvement.

Meanwhile, Iran’s parliament speaker Mohammad Bagher Ghalibaf accused the US of planning a ground offensive, adding to geopolitical uncertainty. Amid rising tensions, Pakistan has offered to mediate and host talks between Washington and Tehran.

The growing crisis has rattled global financial markets. Major Asian indices, including those in Tokyo and Seoul, suffered heavy losses, while markets across Hong Kong, Shanghai, and Sydney also declined. The downturn followed similar losses on Wall Street, where key indexes fell after earlier strikes on Iranian nuclear facilities.

Analysts warn that higher oil prices could drive inflation, disrupt supply chains, and weigh on global economic growth. Experts also caution that any disruption in the Bab al-Mandab Strait—responsible for roughly 12% of global trade—could further push up energy prices and deepen market instability.