Global Crude Oil Prices Reach Four-Week High Amid Middle East Tensions

On July 18, 2026, crude oil prices in the international market reached a four-week high. British crude oil saw an increase of 4.68%, bringing its price to $88.16 per barrel. Similarly, US crude oil prices also rose by 4.68%, reaching $80.66 per barrel.

Petroleum Minister Ali Pervaiz Malik has shared what is described as "good news" for the public regarding petrol prices in Pakistan.

Khurram Shahzad revealed details regarding petrol prices in Pakistan, attributing them to the impact of the ongoing conflict between Iran and the United States. Petroleum Minister Ali Pervaiz Malik also stated that the petroleum and diesel levy rates are currently lower than their pre-conflict levels.

The Federal Petroleum Minister held an emergency press conference to address the impact of the Iran-US conflict on petrol prices. Separately, Ali Pervaiz Malik stated that regional tensions are triggering turmoil in global oil markets.

Dubai’s stock index declined on Friday, hitting a five-week low, primarily due to escalating US-Iran tensions that rattled investor sentiment. The main index dropped 1.4%, with significant falls in financial and real estate shares, including Emaar Properties (down 3.5%) and Emirates NBD Bank (down 2.7%). Food delivery platform Talabat Holding also slipped 0.8%. Investor sentiment remains cautious due to the risks of escalation and disruptions in the Strait of Hormuz. In contrast, Abu Dhabi’s benchmark index closed in the green, supported by banking and energy stocks, with Abu Dhabi Commercial Bank gaining 1.5% and ADNOC Gas up 0.9%. However, Dana Gas slid 1.9% after shutting down production facilities in Iraq due to security threats. Dubai’s index recorded its biggest weekly decline in over four months, falling 3.8%, while Abu Dhabi’s index saw a 1.6% weekly loss.

Copper prices fell on Friday, July 17, tracking equity markets lower as escalating tensions in the Middle East spurred inflation concerns and negatively impacted the demand outlook for industrial metals. The benchmark three-month copper on the London Metal Exchange (LME) was down 1.3% at $13,419.50 a metric ton as of 0930 GMT, and was on course to end the week down 0.5%.

The ongoing conflict between the US and Iran has disrupted shipments through the Strait of Hormuz, contributing to a 12.7% rise in oil prices this week and increasing fuel costs for metal producers. US stock market futures also slid due to renewed attacks in the Gulf and a selloff in chip stocks. COMEX copper was down 1.9% to $6.22 per pound. Analysts predict lower copper trading in the coming months due to lackluster industrial demand and a relatively benign impact on supply from the US-Iran conflict.

Despite the price drops, tight inventories are providing some support. LME copper stocks have fallen below 300,000 tons to 296,625 tons, the lowest since March, with almost 56% unavailable to the market. In China, Shanghai Futures Exchange copper stocks decreased by 20.3% to 79,909 tons, the lowest since August, while the Yangshan premium, a gauge of Chinese import appetite, remained at $95 a ton, its highest since May 2025. Other LME metals also recorded losses, including aluminium (down 1% to $3,153), zinc (down 1.6% to $3,536.50), lead (down 0.2% to $1,868.50), and tin (down 1.4% to $52,250).

Gold prices are experiencing a significant decline this week, on track for their biggest weekly loss in six, as escalating Middle East tensions push oil prices higher. This situation is fueling inflation fears and increasing the likelihood of US interest rate hikes. Spot gold was up 0.3% at $3,980.64 per ounce but has lost 3.4% so far this week. US gold futures for August delivery lost 0.2% at $3,984.10.

Geopolitical risks in the Middle East, coupled with inflation and yield concerns, are identified as dominant factors holding gold back. The ongoing US-Iran clashes have also disrupted shipments through the Strait of Hormuz, contributing to the surge in oil prices.

In related markets, copper and most other base metals also fell on Friday. Deteriorating risk sentiment from the Middle East conflict spurred inflation concerns and cast a shadow over the demand outlook for industrial metals. Benchmark three-month copper on the London Metal Exchange lost 0.88% to $13,479.5 a metric ton, while the most-traded copper contract on the Shanghai Futures Exchange fell 0.63% to 103,650 yuan. Other LME metals saw declines, with nickel losing 1.88%, aluminium 0.5%, zinc 1.09%, lead 0.05%, and tin 1.7%. On the SHFE, nickel fell 1.18%, zinc 0.41%, and tin 1.39%, though aluminium added 0.15% and lead rose 1.8%.

Selling pressure was observed at the Pakistan Stock Exchange (PSX) as tensions between the US and Iran escalated further. The benchmark KSE-100 Index shed over 500 points during the opening minutes of trading on Friday. At 9:35am, the index was hovering at 177,562.67, down by 560.89 points or 0.31%. Selling was observed in key sectors including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks such as HUBCO, MARI, POL, PPL, MCB, MEBL, NBP and UBL traded in the red.

Asian stocks experienced a downturn, influenced by chipmaker weakness and concerns over AI overcapacity, while oil prices continued to surge amidst renewed hostilities in the Middle East. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.06%, and the Nikkei slid 2.8%. Nasdaq futures lost 0.7% and S&P 500 futures declined 0.4%. EUROSTOXX 50 futures were down 0.5%. Brent crude futures rose by 0.7% to $84.83 a barrel, and US crude advanced by 0.7% to $79.49 per barrel. Markets in South Korea were closed for a holiday, after the government announced it will temporarily ban new listings of exchange-traded funds (ETFs) that are tied to certain major technology firms, while raising minimum required deposits for retail investors to curb volatility. Analysts at HSBC noted that concerns have resurfaced about potential overcapacity in the AI build-up, questioning how long the AI cycle can realistically run.

Oil prices rose on Friday as escalating hostilities between the United States and Iran, coupled with threats to close the Red Sea export route, heightened concerns over global oil supply security. Brent crude futures increased by $1.05, or about 1.25%, reaching $85.28 a barrel, while US West Texas Intermediate futures rose by $1.03, or 1.3%, to $79.98 a barrel, recovering losses from the previous session.

Both benchmark contracts have seen significant gains this week, climbing nearly 12%. Brent is on track for its third consecutive weekly gain, and WTI for its second. The escalation follows the first instance since a memorandum of understanding paused fighting last month, where the United States launched two major waves of air strikes in a single day on Wednesday, primarily targeting areas near Iran’s southern coast, with continued firing on Thursday.

International Energy Agency Executive Director Fatih Birol expressed concern on Thursday regarding oil security, stating that the situation could become worrying if it does not improve in the coming weeks. U.S. Central Command confirmed that US forces initiated "a new wave of strikes against Iran for the sixth consecutive night" to further degrade Iranian military capabilities.

In response, Tehran has launched missiles and drones targeting US military bases in neighboring states, including a barrage at a recently expanded air base in Jordan. Adding to the oil supply concerns, Iran’s leadership has reportedly instructed its Houthi allies to be prepared to close the Red Sea oil route if the US strikes Iranian power infrastructure, according to three sources.