Escalating tensions between Pakistan and India have sparked a modest increase in global oil and gas prices, which had previously been under pressure.
On Tuesday, international crude oil prices saw a slight rise, with Brent crude reaching $62.52 per barrel and West Texas Intermediate (WTI) trading at $59.54 per barrel. Meanwhile, natural gas prices jumped nearly 2%, climbing to $3.55 per MMBTU.
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Analysts suggest that concerns over regional instability and potential disruptions to supply chains in the wake of the intensified rhetoric and military activity between the two nuclear-armed nations have contributed to the uptick.
Despite there being no immediate threats to oil production or supply routes, market sentiment remains cautious, with investors wary of the broader impact on trade corridors in South Asia and the Middle East.
Traders explain that the price rebound is largely driven by sentiment, as crude oil had been in a bearish trend until the recent geopolitical developments. While prices had previously been declining due to abundant supply and weak demand from major economies like China and the U.S., the conflict between Pakistan and India has momentarily shifted market dynamics.
Energy experts warn that if tensions escalate further and disrupt maritime routes or key infrastructure, energy prices could face more sustained volatility.
