US-Iran Conflict Sends Oil Prices Soaring to $95 a Barrel

Oil prices have been on a rollercoaster ride due to renewed tensions between the US and Iran. Despite Friday's decline, Brent crude futures had gained 6.1% during the week and reached $95.29 per barrel by 10:38 am CDT (1538 GMT). West Texas Intermediate (WTI) crude fell 54 cents, or 0.59%, to $90.76.

The conflict has raised concerns about global oil supplies, leading to increased fuel price risks for oil-importing countries like Pakistan. The country relies heavily on imported crude oil and petroleum products, which can raise its import bill and put pressure on domestic fuel prices if international prices continue to rise.

Analysts warn that the sharp rise in crude and fuel prices has also increased inflationary pressure worldwide, pushing government borrowing costs higher. Claudio Galimberti, chief economist at Rystad Energy, noted that 'all sectors of the economy are affected by diesel' and that persistent inflation expectations have contributed to higher US government bond yields.

However, Norbert Rucker, head of economics and next-generation research at Julius Baer, stated that the latest escalation has not yet significantly reduced Middle Eastern oil exports. He attributed the current price rally mainly to fear and market sentiment rather than a major supply shock.