Escalating geopolitical tensions between Pakistan and India have sparked a fresh surge in global energy markets, reversing a recent downward trend in oil and gas prices. On Tuesday, Brent crude rose by approximately one percent to $62.52 per barrel, while West Texas Intermediate (WTI) edged up to $59.54. Meanwhile, natural gas prices climbed nearly two percent, reaching $3.55 per MMBTU.
Analysts linked the rebound to fears of regional instability and the potential for disruptions in key trade and energy supply routes. Although no direct threats to production or supply lines have been reported, heightened military activity and rhetoric between the two neighbours have made investors more cautious.
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A Singapore-based commodities trader remarked that the recent rise is primarily driven by sentiment. With crude prices having been under pressure due to abundant supply and soft demand from China and the US, the sudden escalation has injected new uncertainty into the market.
Experts warn that if the crisis intensifies and begins to impact critical infrastructure or maritime routes, global energy prices could face even greater volatility in the coming days.
