Following sharp spikes in global oil prices after US and Israeli strikes on Iran, Prime Minister Shehbaz Sharif has established a high-level committee to monitor petroleum supply and prices.

The move aims to assess risks and mitigate economic impacts of a prolonged regional conflict.

The 18-member committee will be convened by Federal Finance Minister Muhammad Aurangzeb and include senior officials from petroleum, energy, and finance ministries.

Representatives from the State Bank of Pakistan, FBR, and OGRA are also part of the panel. The Petroleum Division will provide secretariat support.

The committee is tasked with continuously monitoring global oil supply and prices, developing strategies to safeguard domestic petroleum availability, and assessing economic consequences if the Middle East conflict persists.

The group will meet daily and submit updates directly to the Prime Minister.

Global oil prices surge

Crude oil prices reacted sharply to the escalating conflict in the Middle East.

Brent crude jumped up to 13% in early Asian trading before settling at a 5% increase, trading around $76.48 per barrel.
US crude also climbed, reflecting global concerns over supply disruptions.

The sudden spike in oil prices comes amid fears that prolonged military operations could strain energy supply chains.

Impact on global markets

Asian and US stock markets responded cautiously:

Hong Kong Hang Seng Index: down ~2%
Japan Nikkei 225: down ~1.5%
S&P 500 futures: down 0.7%
Nasdaq Composite futures: down 0.7%

Investors are bracing for heightened volatility, tying market sentiment closely to Middle East developments.