Ongoing tensions between Pakistan and India have lent fresh support to global energy markets, triggering a modest uptick in crude oil and natural gas prices that had previously been under downward pressure.
International crude oil prices climbed by around one percent on Tuesday, with Brent crude trading at $62.52 per barrel, while West Texas Intermediate (WTI) stood at $59.54 per barrel.
Simultaneously, natural gas prices surged by nearly 2 percent, reaching $3.55 per MMBTU in global markets, Saama TV reported.
Market analysts attributed the rebound in prices to concerns over regional instability and potential disruptions in supply chains, as both nuclear-armed neighbours exchanged heightened rhetoric and increased military activity along the Line of Control.
While no direct threats to oil production or supply routes have been reported, investors and traders remain cautious over the broader implications of the crisis for South Asian and Middle Eastern trade corridors.
“The rise is largely sentiment-driven,” said a commodities trader based in Singapore.
“Crude was on a bearish streak recently, but geopolitical uncertainty has introduced new risk premiums.”
Earlier, prices had been sliding due to ample supply and weaker-than-expected demand from key economies including China and the United States. However, the sudden flare-up between Islamabad and New Delhi has shifted market dynamics, at least temporarily.
Energy experts caution that if the situation deteriorates further, particularly with any disruption to maritime routes or critical infrastructure, energy prices could experience more sustained volatility in the days ahead.
bd-pratidin/GR
