AMMAN: US embassies in several Middle Eastern capitals warned American citizens to beware an “unforeseen escalation” in the regional conflict and urged them to be ready to leave.

“Americans in the region should consider departing, or be prepared to depart should there be escalation,” said a security alert, versions of which were posted on social media by the US missions in Amman, Jerusalem and Baghdad.

The messages urged citizens to check flight details and to follow safety advice from local authorities.

“Americans currently in the Middle East should exercise caution and heightened vigilance and should be prepared for flight cancellations, periodic airspace closures, and potential travel disruptions,” it said.

Americans in Jordan were told not to visit US military bases there, which have recently come under Iranian missile attack, and in Israel they were urged to seek the location of the nearest bomb shelter.

“The Iranian regime is unpredictable, as seen by its recent decisions to attack areas in the region without warning or provocations as well as to expand attacks to areas not previously targeted (such as Egypt),” said a post on the US Embassy Jerusalem site.

On Wednesday a drone struck a US-owned gas vessel moored in an Egyptian port, causing a fire. Egypt is investigating but has not yet accused any group of launching the attack.

Iran’s military, meanwhile, has accused Washington of “escalating tensions” in the region, and warned: “Any country serving as defensive shield for criminal and aggressive America will be engulfed by the flames of war.”

This week, Iran and the US resumed overnight exchanges of fire after a days-long lull in fighting although there were no reported strikes overnight Friday to Saturday.

The Middle East war broke out on February 28 when the United States and Israel launched strikes on Iran, which has retaliated with missile and drone strikes across the region.

NEW DELHI/LONDON: Abu Dhabi National Oil Co (ADNOC) has bought five very large crude carriers (VLCCs) for about $590 million, three sources familiar with the matter said, expanding its fleet as conflicts in the Red Sea and the Strait of Hormuz tighten tanker supply.

The acquisitions are part of a broader push by the UAE producer to control more of its supply chain, allowing it to move crude to customers even as geopolitical tensions disrupt two of the world’s busiest maritime routes.

ADNOC Logistics and Services (ADNOC L&S) recently bought the five VLCCs from tanker company Frontline Plc, the sources said.

Of these, two 2012-built vessels were purchased for about $115 million each, and three built in 2015 cost about $120 million each, the sources said.

“We do not comment on rumours or market speculation. ADNOC L&S continually reviews its fleet requirements and strategic growth opportunities,” the company said in an emailed statement.

“As a matter of policy, any announcements relating to potential transactions are made in accordance with the company’s internal governance processes and applicable disclosure obligations.”

Frontline declined to comment.

While producers such as Iraq, Qatar and Kuwait are struggling to place oil in the market due to the disruption from the war in the Middle East, former OPEC member United Arab Emirates has sold millions of barrels to refiners through direct sales and spot tenders.

ADNOC has also acquired three very large gas carriers (VLGCs) for about $115 million each, one of the sources said.

ADNOC L&S has also ordered another 25 to 30 new vessels, including crude tankers, LNG carriers and LPG carriers, from various shipyards, this source said.

ADNOC L&S operates more than 900 vessels including seven VLGCs and eight VLCCs, according to a fact sheet posted on its website.

The investment in new ships follows months of disruption to shipping through the Red Sea and the Strait of Hormuz.

Besides expanding its owned fleet, the company also chartered about 25 crude tankers from South Korea’s Sinokor after the regional crisis escalated, the source added.

About 15 vessels were deployed as shuttle tankers to move crude from facilities inside the Strait of Hormuz to storage terminals in Fujairah and Oman, while the remaining vessels supplied customers directly, the source added.

Sinokor did not respond to a Reuters request for comment.

NEW YORK: Oil prices rose more than USD 1 on Friday and were on track for a big monthly gain as reports that some tankers were forced to turn around in the Strait of Hormuz prompted traders to reassess shipping flows through the key waterway.

Brent futures were up USD 1.01, or 1.1 percent, at USD 90.04 a barrel at 1:26 p.m. ET (1726 GMT). US West Texas Intermediate crude was up USD 1.28, or 1.5 percent, at USD 84.87 a barrel.

For July, Brent and WTI were on track to finish up 24 percent, their highest one-month gain since March.

The Iran war that began on February 28 has sharply reduced traffic through the Strait of Hormuz, which previously carried about a fifth of global crude oil and natural gas supplies, disrupting Middle East output running into millions of barrels a day. Back-and-forth attacks in recent days have ended a brief pause in the fighting between the United States and Iran.

READ MORE: Oil climbs as traders assess shipping flows; big monthly gain in sight

Additionally, Houthi militia forces in Yemen have disrupted shipping through the Bab el-Mandeb Strait linking the Red Sea to the Gulf of Aden, creating a second chokepoint for oil flows.

“Fresh US strikes on Iranian military targets keep the geopolitical risk premium firmly in place near chokepoints like the Strait of Hormuz. Domestic supply is reinforcing the move as well, with US crude stockpiles … down to multi-year lows,” research firm Gelber & Associates wrote in a note.

The note was referring to US Energy Information Administration (EIA) data showing that US commercial crude stocks last week fell to their lowest levels since 2018.

Traffic through strait

Iran’s Revolutionary Guards stopped two tankers from transiting the Strait of Hormuz, while four others changed course, Fars News Agency reported. However, two very large crude carriers carrying oil loaded from the Gulf exited the strait on Friday, although traffic through the waterway remained sparse, according to Kpler ship-tracking data.

Twenty-nine commodity vessels passed through the Bab el-Mandeb Strait on Thursday.

“The market has stopped trading the war and started trading the shipping data,” said Ole Hvalbye, market analyst at SEB Research. Talks between Iran and Oman on managing the strait continue, according to the Iranian Labour News Agency, despite Iran rejecting Oman’s proposal for joint management of the waterway.

Geopolitical risks remain

A drone strike that sparked fires on two gas vessels in Egypt’s Mediterranean port of Damietta has raised a new threat to shipping through the Suez Canal, one of the last major export routes available to Saudi oil amid the expanding Iran war. Saudi Arabia this week said it is seeking to lead a coalition to boost defence cooperation in the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden.

Elsewhere, Ukraine’s military said it hit Russia’s Volgograd oil refinery overnight on Friday, causing a fire at the facility. In Kazakhstan, Tengizchevroil, the operator of the giant Tengiz field, has resumed oil exports via the Georgian port of Batumi for the first time since March, two sources told Reuters.

In the United States, crude oil output fell about 2 percent in May from a record in April, while exports hit a record high for the second-consecutive month, according to data published by the EIA on Friday.

Higher oil prices, however, dented consumption, with demand for crude oil and petroleum products falling more than 3.5 percent in May to about 20.07 million barrels per day, the lowest since March 2025, the data showed.

A report from Baker Hughes on Friday showed that US energy firms this week added rigs for a sixth time in seven weeks. The number of active rigs acts as an early indicator of future output.

Separately, a Reuters survey of 31 economists and analysts showed that oil prices are expected to rise further this year. Brent crude is estimated to average USD 85.22 a barrel in 2026, up from June’s forecast of USD 84.50, the survey showed.

TEHRAN: Iranian state media said on Friday that the bodies of five members of the Islamic Revolutionary Guard Corps (IRGC) killed in joint US-Saudi strikes in Iraq this week had been returned.

“The bodies of five IRGC members killed in the recent US-Saudi attacks on Iraq were brought into the country through the Mehran border crossing,” in western Ilam province, the IRNA state news agency reported.

The United States and Saudi Arabia said on Wednesday they had struck Iran-backed militants in Iraq in response to recent attacks on the Gulf kingdom.

The strikes targeted positions belonging to the Hashed al-Shaabi, an Iraqi armed coalition that includes several powerful pro-Iran groups, killing at least 20 militants, including the five Iranians.

Iran’s Revolutionary Guards say it targeted US positions in the region in response to attack

The IRGC’s Quds Force oversees Iran’s operations abroad, and Guards members killed outside Iran are often affiliated with the unit.

The United States killed the Quds Force’s commander Qasem Soleimani in an airstrike in Baghdad in 2020, along with Hashed al-Shaabi deputy leader Abu Mahdi al-Muhandis.

CAIRO/WASHINGTON: US President Donald Trump said talks in Cairo between mediators and Hamas leaders on Thursday have led to a phased disarmament agreement in Gaza, but a Hamas official described the deal as a draft and US officials said Israel was skeptical the militant Palestinian group would surrender its weapons.

“Today, the Board of Peace reached a HISTORIC agreement for the COMPLETE DISARMAMENT of Hamas and all other armed groups in Gaza,” Trump said in a social media post, adding that the disarmament would come in phases.

“This is a monumental step toward lasting PEACE and SECURITY.”

The agreement was a critical step towards Gaza being governed by a new Palestinian government that will work closely with the so-called Board of Peace, Trump said.

“At the same time, Israel will have the security it deserves, with Gaza no longer used as a base for terror attacks,” he added.

The Israeli embassy in Washington did not immediately respond to a request for comment on Trump’s announcement.

A Hamas source told Reuters the “draft agreement” stipulates that heavy weapons would only be stored and kept under the control of a Palestinian administration, and the weapons cannot be transferred to Israel.

“We will not take any action regarding disarmament prior to Israel’s withdrawal from the Strip,” Ghazi Hamad, a member of the Hamas negotiating team, told Al Jazeera.

US military says US, Saudi forces struck sites of Iran-backed groups in Iraq

A US official on Thursday told reporters that Israel is “very skeptical that Hamas will disarm.”

“We’re very confident they will adhere to it,” the US official added. “If they don’t, obviously President Trump would be very, very disappointed.”

There were also questions about how long the process would take.

A Board of Peace official gave an estimate of 200 to 320 days, but a US official played down that timeline.

An Israeli official, who declined to be identified, said before Trump’s announcement Israel had rejected a proposal.

“Israel demands the complete disarmament of Hamas, including the removal of weapons from Gaza and the complete demilitarization of the Strip as a precondition for any process,” the official said earlier on Thursday.

“The 15-point document in question does not provide a satisfactory response to these demands and Israel conveyed its objections.” Earlier, Israeli strikes killed at least six Palestinians in Gaza, including two children, medics said.  

A roadmap towards Hamas disarmament?

Hamas leaders held talks with mediators from Egypt, Qatar and Turkey on the second phase of Trump’s Gaza plan, as presented to them by his Board of Peace.

Trump set up the board to oversee a plan to end Israel’s war in Gaza and rebuild the devastated territory.

He appointed members of the board with himself as chair and said last year that the board will supervise Gaza’s temporary governance.

“Ahead of us is a Gaza rebuilt, governed by Palestinians and at peace with Israel an a political horizon to a meaningful resolution the Israeli Palestinian conflict,” Nickolay Mladenov, Trump’s Board of Peace envoy for Gaza, said in a statement after the president’s post. Officials involved in the talks shared few details about plans to rebuild Gaza.

The plan also calls for a surge in humanitarian aid, governance by a civilian Palestinian administration, the withdrawal of Israeli forces from Gaza and the deployment of an international force to help maintain security.  

Handover of weapons could be sticking point

The reality on the ground in Gaza, so far, remains far from the goals of the agreement.

Saudi Arabia says it destroyed drones launched by armed groups in Iraq

Hamas wants Israel to commit to ending attacks on Gaza and withdraw its forces.

It is not yet clear what will happen regarding light or personal weapons or whether the new Hamas stance will be accepted by Israel or the Board of Peace.

The plan includes the elimination of tunnels, arms stockpiles and weapons production facilities, a diplomat involved in the talks said, adding that by the end of the process there would be no remaining militant infrastructure in Gaza.

“This isn’t really a trust deal,” a US official said on Thursday, calling the agreement a “conditions-based deal.”

The Israeli military has continued to expand its military occupation of Gaza, with Prime Minister Benjamin Netanyahu saying that Israel intends to expand the area under its control to 70% of the enclave.

It remains unclear how many forces would be available to deploy with the planned International Stabilization Force, and whether Israeli troops would withdraw from the enclave.  

Attacks continue

Health officials said separate Israeli strikes had killed at least two children, a woman and three men in Gaza on Thursday.

The Israeli military said it struck Hamas in the enclave.

Iran’s Revolutionary Guards say it targeted US positions in the region in response to attack

The ceasefire in Gaza has been repeatedly violated, with more than 1,200 Palestinians, mostly civilians, being killed by Israeli attacks and four Israeli soldiers being killed by militants since the truce began in October, according to Gaza health officials and Israeli authorities, respectively.

Hamas does not usually disclose its losses.

ISLAMABAD: The Lloyd’s Market Association (LMA) has removed Pakistan’s territorial waters from the high-risk areas listed under LMA’s Joint War Committee (JWC), a move that will help reduce war-risk insurance premiums and shipping costs.

This was announced here on Thursday by the Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry. He called the development a historic achievement which would improve the competitiveness of Pakistani exports and strengthen the confidence of international shipping companies, traders and investors.

He said the move could also make Pakistani ports in Karachi and Gwadar more attractive to global shipping lines and investors, creating opportunities for regional trade, cargo transit and trans-shipment.

Pakistan had remained on the committee’s listed areas for years. In March this year, the JWC also expanded its designated high-risk maritime zone in response to escalating tensions in the Gulf, extending the notification area eastwards to Pakistan’s coastline as part of a broader revision covering the Arabian Gulf, Gulf of Oman, Gulf of Aden and southern Red Sea.

According to Chaudhry, the government began efforts to secure Pakistan’s removal from the list on March 13, 2026 after identifying its inclusion as a factor that increased maritime trade costs through additional war-risk insurance premiums and surcharges.

He said that subsequently, Prime Minister Shehbaz Sharif formed a committee, with Chaudhry, to pursue the matter through negotiations with the LMA.

The committee presented Pakistan’s case using technical evidence and security data, the minister said, adding that months of discussions eventually resulted in Pakistan’s removal from the listed areas. The minister said the government would continue efforts to improve maritime safety, expand port capacity and attract investment as part of its plans to position Pakistan as a regional logistics, transit and trans-shipment hub.

Pakistan, in recent months, especially after the start of the Gulf crisis, has taken several measures to expand the country’s maritime trade, including tariff reduction, elimination of wharfage charges on transhipment cargo and reduced wet charges such as pilotage and port dues.

Under the new policy, vessels carrying 50 percent or more transhipment cargo are receiving a 50 percent discount on fees, while those with 25 to 50 percent transhipment cargo will qualify for a 25 percent concession.

On March 30, in a significant move, the M/V HMO LEADER (IMO 9169811) successfully berthed at Gwadar Port, carrying 35 pieces of general transhipment cargo, which reflects a growing trend of international maritime operators redirecting cargo flows towards Pakistan’s south-western coastline.

Gwadar Port is increasingly being recognised for its strategic location and modern infrastructure, offering a haven for transhipment activities as international shipping lines are approaching the port to utilise its facilities. To facilitate this shift, authorities are offering free storage for transhipment cargo, a measure intended to attract greater volumes and boost Gwadar’s regional competitiveness. According to government officials, the port and its integrated free zone have the capacity to handle up to 16,000 TEUs of containerised cargo, along with 90,000 square meters.

According to a recent report of the Pakistan Institute of Development Economics (PIDE), Pakistan’s port infrastructure is composed of three main ports: Karachi Port, Port Qasim, and Gwadar Port. Each is characterised by distinct operational features.

Karachi Port, being the country’s oldest and one of South Asia’s busiest deep seaports in the Gulf conflict, has observed a substantial increase in shipping activities. Approximately 75 percent of the redirected cargo shipments are handled at Karachi port. The increase is also reflected in terms of container volumes at terminals.

Karachi port has approximately 11,000 cargo containers from trans-shipping and about 133 vessel calls in the month of March. This volume is significantly higher than the total handling at the same port during the whole previous year.

PIDE’s report further said that Port Qasim is attributed as the country’s premium industrial port. It has a relatively modern infrastructure and plays a crucial role in the country’s trade and economic growth and handles about 51 percent of total coastal trade. This port has significant potential for expansion. During March 2026, following the Hormuz conflict, it handled approximately 25 percent of the redirected cargo shipments in the region.

The port has picked up, handling about 4000 TEUs, including more than 900 cargo containers in a single day in the month of March. The overall trans-shipment growth has been approximately 2,302 percent this time. Port Qasim, despite having expansion capacity and updated infrastructure, faces a few constraints in operational revival due to its upstream location.

Gwadar is a warm-water, deep-sea port located on the Arabian Sea touching the doorway of the key shipping routes of the Persian Gulf, just at the exit of the Strait of Hormuz.

Given its proximity to established shipping routes and deep-sea capacity, it offers a substantial long-term potential to Pakistan. Gwadar is basically a trans-shipment port yet has the potential to function as a transit port for land-locked countries like Afghanistan and Central African Countries (CAR).

During the Gulf conflict, this port marked its entry to the regional trans-shipment network by berthing a vessel. The shipping volumes are still building up in the port, which indicates its strong potential as a major trans-shipment hub for Pakistan.

Copyright Business Recorder, 2026

ISLAMABAD: Pakistan has joined a bloc of 13 other countries to formally support a Saudi-led initiative to establish a multinational maritime defence alliance aimed at protecting the Red Sea, Bab el-Mandeb Strait and Gulf of Aden from growing security threats.

Saudi Arabia’s Ministry of Defense said that the Kingdom would serve as the founding and leading state of the proposed alliance and host its headquarters, marking a significant step towards creating a new collective security mechanism for some of the world’s most strategically important maritime routes.

The initiative was discussed at a high-level meeting hosted by the Saudi Ministry of Defense on Thursday, attended by chiefs of staff and military representatives from 43 countries, along with the European Union Delegation to the Kingdom. A total of 51 countries and organisations had been invited.

READ MORE: Saudi Arabia unveils plans for multinational maritime defence coalition

Following the meeting, Saudi Arabia, Pakistan, Kuwait, Bahrain, Qatar, Türkiye, Egypt, Jordan, Yemen, Bangladesh, Nigeria, Sudan, Djibouti and Somalia issued a joint statement supporting the proposed alliance and endorsing the agreed foundational arrangements.

The alliance is intended to counter attacks on commercial ships, oil tankers and maritime infrastructure, which threaten freedom of navigation, global supply chains, energy security and international trade.

Participants reviewed the draft charter, organisational structure, command-and-control arrangements and operational mechanisms of the coalition. Military planners from countries seeking membership will now work to finalise the charter and technical framework before the alliance is formally launched.

Saudi Arabia described the coalition as an open international defence initiative and invited other countries sharing its objectives to join after completing their respective national procedures.

The development comes amid growing international concern over threats to shipping in the Red Sea and adjoining waterways, through which a significant share of global energy supplies and commercial trade passes.

The meeting concluded with a commitment to accelerate the alliance’s establishment and develop a coordinated mechanism capable of deterring maritime threats and safeguarding international navigation and trade.

Copyright Business Recorder, 2026

DUBAI: A drone strike on gas vessels in Egypt’s Mediterranean port of Damietta signalled a potential new front in the US-Iran war, raising the prospect of threats to navigation through the Suez Canal, one of the last remaining export routes for Saudi oil.

Egypt’s cabinet said on Thursday that an initial investigation found an unidentified drone caused a fire on two vessels at Damietta port on Wednesday. The port lies near the Suez Canal, which links the Mediterranean and Red seas.

No group has claimed responsibility, the cabinet said. Trading sources familiar with the incident said the drone hit US-owned gas storage tanker Energos Winter, causing a fire that spread to a second vessel.

Drone strike near Suez Canal raises new security threat

Overnight, the US military said it struck Iran’s Revolutionary Guards’ military command centres and drone facilities after Tehran fired at US forces in the region.

Iranian state media, quoting the Guards, said US strikes killed three civilians and wounded two children on Qeshm Island, while three Guards members were killed in Zanjan province.

The governor of Khuzestan province, also quoted by state media, said two student dormitory complexes in the southwestern city of Ahvaz were damaged in the attacks.

The Islamic Revolutionary Guard Corps said it struck the Azraq military base in Jordan in response, attacking US F-35 fighter jets and killing US service members. The Pentagon did not immediately respond to a request for comment.

US bases in Jordan have lately become primary Iranian targets. Jordan’s armed forces said earlier on Thursday they had intercepted five Iranian missiles. The Guards also struck US assets at Ali Al Salem Air Base in Kuwait, destroying two drone hangars and a fuel storage facility, according to Iran’s semi-official Tasnim news agency.

An Iranian attack hit a building owned by a Chinese company in northern Kuwait, killing a worker and inflicting significant damage, Kuwait’s Defence Ministry said.

Saudis join us strikes

In a first in the five-month war, Saudi Arabia on Wednesday publicly joined strikes alongside US forces, targeting Iran-aligned groups in eastern Iraq, in retaliation for drone attacks on Saudi oil targets launched from Iraq.

Yemen’s Iran-allied Houthis carried out attacks on Saudi Arabia from Iraq this week in coordination with Iraqi groups, according to assessments by Saudi Arabia and regional partners. After the joint Saudi-US attacks, Saudi Arabia’s defence minister met Vice President JD Vance in Washington to urge the Trump administration not to escalate the conflict, two sources told Reuters.

The war began in February, when the US and Israel launched a bombing campaign in Iran that President Donald Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed amid renewed fighting over the Strait of Hormuz, a crucial waterway that Iran says it now controls.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict after the Houthis in Yemen declared a naval blockade last week on Saudi Arabia, threatening the alternative Red Sea route for its oil to Asia. Attacks on ships by the Houthi militants prompted London’s marine insurance market to widen its “high risk” zone in the Red Sea to include more of the coast adjacent to Saudi ports.

Trump said he would hit Iran hard for firing missiles at US forces, but that Washington was also still seeking a peace deal to end a conflict that has roiled global energy and finance markets. Oil prices soared more than 8 percent on Wednesday, before easing by about 1 percent on Thursday in volatile trade, with benchmark Brent crude trading just below the $90 mark.

Iran controls crucial shipping waterway

Iran said on Wednesday that it struck three tankers attempting to transit through the Strait of Hormuz along an unauthorised route. However, a QatarEnergy-controlled liquefied natural gas tanker exited the strait overnight, the first such vessel recorded by ship-tracking data leaving the waterway since July 11. Iranian news agency Fars said Tehran had given its permission for the tanker to pass.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, sources told Reuters on Tuesday.

Tehran rejected the Omani proposal on Wednesday, but Iran’s semi-official ILNA news agency quoted the country’s foreign ministry spokesperson Esmaeil Baghaei as saying that talks with Oman over the Strait of Hormuz were continuing.

After the war exposed gaps in Iran’s ability to protect military sites and strategic infrastructure, Tehran was expected to receive within weeks a first shipment out of up to 400 Chinese-made shoulder-fired air-defence missile launchers, three sources familiar with the deal told Reuters. Iran’s Foreign Ministry did not immediately reply to a request for comment, while China’s Foreign Ministry denied the report.

NEW YORK: Oil prices settled lower on Thursday after a volatile session, as traders digested proposed plans for a Saudi Arabia-led maritime coalition to boost defense cooperation around the Red Sea. Saudi Arabiaseeks to lead a coalition to boost defence cooperation in the Bab El-Mandeb Strait, the Red Sea and the Gulf of Aden.

The Saudi defense ministry said 14 states including Turkey, Pakistan, Egypt, Sudan and Djibouti have issued a joint statement in support of the proposed multinational maritime defence coalition.

Brent futures settled down USD 1.71, or 1.88 percent, at USD 89.03 a barrel. Trade was choppy and Brent touched a session high of USD 93.31 after Washington and Tehran traded strikes on each other’s military targets again. US West Texas Intermediate crude futures settled down 87 cents, or 1.03 percent, at USD 83.59, after hitting a high of USD 85.94.

READ MORE: Oil falls on Hormuz talks

Iran-aligned Houthi militants in Yemen declared a naval blockade last week on Saudi Arabia, threatening the Red Sea route for its oil exports, an alternative to the largely blockaded Strait of Hormuz.

“There is this sense that there is a lot of supply waiting to hit market once all of this is resolved, and that is a weight against any kind of dramatic price rise,” said John Kilduff, partner at Again Capital. Iran and Oman continued talks on the management of the Strait of Hormuz, according to the Iranian Labour News Agency. On Wednesday, a senior Iranian official said Iran had ruled out Oman’s proposal for regional joint management of the waterway.

“The fact that Oman is in talks with Iran could suggest that progress is being made on re-opening the Strait of Hormuz,” said Hamad Hussain, senior climate and commodities economist at Capital Economics. The strait, which normally handles around a fifth of global oil and liquefied natural gas flows, has remained a focal point for oil markets since the US and Israel launched the war on Iran on February 28.

“Until safe passage through the Strait of Hormuz is no longer a gamble, the risk premium in oil is not going anywhere — hope for diplomacy is welcome, but the market is pricing in the reality of ongoing strikes,” said Tim Waterer, chief market analyst at KCM Trade.

Middle East conflict widens

The US military said it had hit dozens of Islamic Revolutionary Guard Corps targets in Iran in an operation launched after Tehran fired ballistic missiles at US forces in the Middle East. No US aircraft were destroyed or damaged in the recent attempted Iranian attacks, the US military said on Thursday, denying a claim it said was made by Iran’s Revolutionary Guards that three US F-35 jets and three other aircraft were destroyed.

“That lowers temperature on the situation,” said Again Capital’s Kilduff. A drone caused a fire that engulfed two gas vessels at Egypt’s Mediterranean port of Damietta, the Egyptian cabinet said on Thursday, confirming that the blaze which erupted a day earlier was the result of an attack rather than an accident.

Egypt has secured alternative sources to cover its energy demands after the attack, Prime Minister Mostafa Madbouly said later on Thursday. Yemen’s Iran-aligned Houthis attacked Saudi Arabia this week from Iraqi territory in coordination with Iraqi armed groups, according to assessments by Saudi Arabia and regional partners, reflecting growing coordination among Iran-aligned militias, two officials in the region said.

The attacks included strikes on oil facilities in Saudi Arabia’s eastern province, the kingdom’s main crude hub. In another blow to supply, tankers planned for loading at the Caspian Pipeline Consortium (CPC) terminal are heading away from the Black Sea after a vessel was hit during loading at the terminal on Thursday, two sources said and shipping data showed.

A Ukrainian drone attack caused a fire at Lukoil’s Perm refinery that damaged and forced the shutdown of one of its crude distillation units, two industry sources told Reuters. “Given the disruption to flows through several maritime chokepoints, as well as the rapid depletion of oil inventories, prices could feasibly be even higher than where they sit currently,” Capital Economics’ Hussain added.

ISLAMABAD: The Finance Division has sounded the alarm over the persistent inflation by projecting Consumer Price Index (CPI) at 9-10 percent in July 2026 amid rising global oil prices, as Pakistan’s economy faced a 33.9 percent plunge in foreign direct investment declining from USD 2.477 billion in 2024-25 to USD 1.636 in the last fiscal year and a decline of 4.6 percent in exports from USD 32.3 billion in 2024-25 to USD 30.8 billion in 2025-26.

The Finance Division uploaded the Monthly Economic Update and Outlook July 2026, which stated that renewed geopolitical tensions in the Middle East pose downside risks to inflation and the external outlook.

“Renewed US-Iran hostilities once again pose downside risks through global energy prices, trade and financial market volatility.

However, stronger macroeconomic fundamentals, improved external buffers, government readiness and continued policy vigilance have enhanced Pakistan’s capacity to manage such shocks effectively,” it added.

READ MORE: Pakistan’s inflation expected to return to single digits in July

The Economic Update highlighted a sharp 33.9 percent contraction in FDI, with inflows declining from USD 2.477 billion to USD 1.636 billion, while exports also fell 4.6 percent to USD 30.8 billion in 2025-26, compared to USD 32.3 billion in the previous fiscal year.

The downward trend continued in June 2026 when it declined to USD 13.5 million against USD 210 million in June 2025.

Total FDI inflows during FY2026 were recorded at USD 3.6 billion, while net FDI amounted to USD 1.6 billion, with inflows from China (USD 862.0 million), Hong Kong (USD 339.4 million) and the UAE (USD 235.9 million) as the main sources. By sector, power (USD 958.3 million) and financial services (USD 805.5 million) attracted the most FDI, while private and public FPI recorded net outflows of USD 594.8 million and USD 591.4 million, respectively. As of July 17, 2026, foreign exchange reserves stood at USD 22.7 billion, including USD 17.3 billion held by the SBP.

Portfolio investment in the fiscal year 2025-26 remained in the negative territory, recorded outflow of USD 1,186 million as against USD 730.8 million in the same period of the previous year, while Pakistan’s Stock Market index rose by a whopping 27.6 percent, market capitalisation by 21.6 percent and incorporation of companies by 24.1 percent.

Total foreign investment dropped substantially to USD 450.6 million in fiscal year 2025-26, down from USD 1.746 billion a year earlier.

Workers’ remittances reached USD 3.5 billion in June 2026, up 2.0 percent from the same month last year. On a cumulative basis, inflows in FY2026 reached USD 41.6 billion, up 8.6 percent from the previous year. The major corridors of workers’ remittances in June 2026 were Saudi Arabia (USD 829.6 million) with a total share of 24 percent, followed by the United Arab Emirates (USD 792.2 million) with a 23 percent share and the United Kingdom (USD 514.9 million).

The report further noted that in view of the prevailing climatic conditions, the forecast of below-normal rainfall during July-September 2026 in most parts of the country (as per PMD’s seasonal outlook for JAS report, dated June 30, 2026) indicates an elevated risk of water stress for major Kharif crops (sugarcane, rice, cotton, and maize), thereby increasing irrigation requirements.

In addition, spatial temperature gradients may also generate strong winds, dust storms, thunderstorms and hailstorms, potentially affecting seasonal crops, vegetables and orchards.

Large-Scale Manufacturing (LSM) grew by 5.8 percent during July-May FY2026 compared with a contraction of 1.1 percent last year.

During the period, 16 out of 22 sectors recorded growth. In May 2026, LSM witnessed a growth of 1.2 percent on a month-on-month (MoM) basis, while on a YoY basis it declined by 1.0 percent mainly due to lower production of pharmaceuticals, textiles, and iron & steel products.

Headline CPI inflation stood at 11.1 percent on a YoY basis in June 2026, easing from 11.7 percent in May FY2026, but remained above 3.2 percent in June FY2025. Average inflation in FY2026 stood at 7.1 percent compared to 4.5 percent during the same period last year.

FBR tax revenue reached Rs13,010.4 billion during July-June FY2025-26, achieving 10.3 percent tax-to-GDP ratio, with an increase of 10.8 percent as direct and indirect taxes grew by 13.7 percent and 7.9 percent, respectively. Within indirect taxes, sales tax, customs duties and federal excise duty increased by 9.0 percent, 3.6 percent and 9.6 percent, respectively.

During July-May FY2026, net federal revenue receipts increased by 7.3 percent to Rs9,385.4 billion, supported by higher tax and non-tax revenues.

Federal non-tax revenue rose by 6.3 percent to Rs4,852.0 billion. Total expenditures declined by 9.4 percent to Rs12,732.9 billion.

Within total, current expenditures reduced by 9.4 percent mainly due to a decline in markup payments by 21.7 percent, while development spending declined by 8.9 percent.

Consequently, the fiscal deficit narrowed to 1.6 percent of GDP (Rs2,032.8 billion) during July-May FY2026 as compared to a deficit of 3.8 percent of GDP (Rs4,278.0 billion) during the corresponding period last year. Primary surplus was recorded at 3.3 percent of GDP (Rs4,130.8 billion) compared to 3.2 percent of GDP (Rs3,594.6 billion) in FY2025.

The current account recorded a deficit of USD 649 million in June 2026, bringing the cumulative FY2026 deficit to modest USD 139 million. Exports of goods and services recorded at USD 40.9 billion, broadly unchanged from USD 40.8 billion in the same period last year, with goods exports amounting to USD 30.8 billion and services exports reaching USD 10.0 billion (18.7 percent increase on a YoY basis).

Imports of goods and services were recorded at USD 76.4 billion compared to USD 70.4 billion last year, of which goods imports were USD 64.5 billion. Consequently, the goods and services trade deficit widened to USD35.5 billion, up from USD29.6 billion a year earlier.

According to PBS data, gains in key exports were raw cotton (199.2 percent), cotton yarn (12.4 percent), petroleum products (54.8 percent) and sports goods (10.1 percent), while major imports rose in the transport sector (66.4 percent) in FY2026 over the previous fiscal year.

The Monetary Policy Committee (MPC), in its meeting held on 27th July 2026, decided to keep the policy rate unchanged at 11.5 percent.

The Committee assessed that the macroeconomic outlook has improved, supported by recent high-frequency indicators, the transmitted impact of earlier de-escalation through declining global oil prices, and the relative easing of supply chain disruptions. These factors have contributed to an improvement in recent economic indicators, including inflation.

However, the outlook remains susceptible to heightened risks, particularly due to the resurgence of conflict in the Middle East. During FY2026, broad money (M2) grew by 14.7 percent (Rs5,957.0 billion), compared with growth of 12.9 percent (Rs4,624.5 billion) in FY2025. Within M2, Net Foreign Assets (NFA) of the banking system increased by Rs1,673.2 billion, compared with Rs1,602.8 billion last year.

Net Domestic Assets (NDA) of the banking sector increased by Rs4,283.8 billion, compared with a Rs3,021.7 billion increase last year. Government borrowing for budgetary support amounted to Rs2,251.4 billion, lower than Rs4,354.4 billion last year.

Private sector credit increased by Rs1,463.3 billion, compared with Rs1,081.9 billion last year. Within total credit, loans to private sector business observed net borrowing of Rs1,176 billion in FY2026 as compared to net borrowing of Rs1,007 billion in FY2025. Within total loans, working capital loans witnessed net borrowing of Rs632 billion against net borrowing of Rs617 billion in the last year.

Major borrowers include: sugar sector, rice and wheat processing, pharmaceutical, electrical equipment, wholesale and retail trade, construction and cement sector. On the other hand, demand for fixed investment loans increased to Rs625 billion against net borrowing of Rs414 billion in the last year. Major demand was driven by the textile, chemical, cement, construction, and transport & storage sectors.

The Pakistan Stock Exchange (PSX) remained bullish in June 2026. The benchmark KSE-100 Index gained 6,339 points to close at 180,302, supported by ample liquidity, attractive valuations across key sectors, and resilient investor sentiment despite intermittent geopolitical volatility. Market capitalisation increased by Rs1,031.5 billion to Rs20,197.8 billion by the end of June FY2026.

In June 2026, the Bureau of Emigration & Overseas Employment registered 38,410 workers for overseas employment, reflecting continued opportunities for Pakistani workers in international labor markets.

The Pakistan Poverty Alleviation Fund, in partnership with 24 organisations, disbursed 7,482 interest-free loans worth Rs535 million during June 2026, reinforcing its commitment to expanding financial inclusion and supporting sustainable livelihoods. Since 2019, cumulative disbursements have reached Rs126.2 billion.

During July-May FY2026, Rs519.5 billion was spent under the BISP, reaffirming the government’s commitment to protecting vulnerable households through targeted social assistance.

Copyright Business Recorder, 2026

LONDON/SINGAPORE: QatarEnergy (QE) has bought 33 spot LNG cargoes this year from the US for delivery to South Korea, Taiwan, Bangladesh, India and Japan, four trade and industry sources said, as it tried to reduce disruption to key customers after Qatari gas exports through the Strait of Hormuz were halted by the Iran war.

QE declared force majeure on its liquefied natural gas shipments after Iran closed the waterway to shipping, bottling up 20% of global oil and gas supplies from major producers that export from terminals around the Gulf.

The purchases of US LNG dwarf the four cargoes QE bought last year as it sought to keep some of its customers supplied despite the force majeure declaration, which releases it from contractual obligations.

Qatar was seeking to protect its decades-long reputation as one of the world’s most reliable gas suppliers, the sources said.

QE did not respond to emailed requests for comment on the LNG purchases.

The 33 cargoes amount to a third of a month’s exports from QE before the conflict and were worth around $1 billion, according to Reuters calculations.

About 80% of Qatar’s LNG shipments are typically exported to buyers in Asia and the move was “a gesture of good faith” by QE towards some of its important customers, one source said.

QE wanted to show customers it valued them and was trying to help keep them supplied, another added.

QE bought the cargoes directly from US producer Venture Global LNG as well as picking up cargoes from some of Venture Global’s customers, the sources said.

Venture Global declined to comment. Out of the 33 cargoes, 28 have already been delivered and the remaining five are en route to South Korea, Taiwan and India, according to data analytics firm Kpler.

While Iraq’s National Security Council has condemned Wednesday’s Saudi-US strikes against the Iran-backed Popular Mobilisation Forces (PMF), which killed at least 20 members of the Iraqi paramilitary group, an influential Iraqi Shia cleric, Muqtada al-Sadr, has blamed the “reckless actions” of Iraqi armed groups and the failure of the state to bring weapons under its control for the deaths of fighters from the Popular Mobilisation Forces (PMF) and Iraqi security personnel following joint US-Saudi air strikes.

Al-Sadr, who commands a mass following among Iraq’s Shia Muslims, has accused militia leaders of pursuing their own interests while their fighters were killed.

According to media reports, he has also called for an end to what he has described as “individualistic and irrational” actions.

The foregoing clearly indicates the growing complexity of the situation following the US-Iran war. For example, while Iraq’s national security council meeting, chaired by Prime Minister Ali al-Zaidi, has called the attacks on PMF bases in seven Iraqi provinces “a flagrant violation of Iraq’s sovereignty and the sanctity of its lands”, Saudi Arabia and US Central Command (CENTCOM) have claimed that their strikes have targeted Iran-backed armed groups in Iraq “responsible for attacks on American troops and Saudi energy infrastructure”.

The Iraqi cleric, al-Sadr, therefore, appears to be quite realistic insofar as his approach to the situation is concerned. In my view, the Iraqi government must take every possible step aimed at reining in its armed militias with a view to fully insulating and protecting its economic and security interests in the ongoing Middle East conflict which has expanded into a wider regional war. Needless to say, Iraq has already suffered too much and for too long for a variety of reasons.

In my view, prime minister Zaidi has to ensure that these militant groups no longer act as the proxies of Western or regional powers in the greater interest of his own country, Iraq, which sits inside the historic region of Mesopotamia (the land of two rivers).

Fahd Tirmizi, Damascus

Copyright Business Recorder, 2026

Saudi Arabia on Thursday unveiled plans for a multinational maritime defence coalition aimed at protecting international shipping and energy supply routes in the Red Sea region after attacks by Yemen’s Iran-aligned Houthis disrupted one of the world’s busiest trade corridors.

The Saudi defence ministry said representatives from 43 countries and the European Union attended an international meeting that discussed the proposed coalition, including Saudi Arabia serving as its founding and leading state and hosting its headquarters.

The ministry said the coalition would strengthen maritime security, safeguard freedom of navigation, secure international trade routes and energy supply lines, and protect shared maritime interests in the Bab el-Mandeb Strait and the Gulf of Aden.

READ ALSO: Yemen says Houthis planning to impose fees for Red Sea transit

It said 14 countries, including Turkiye, Pakistan, Egypt, Sudan and Djibouti, issued a joint statement supporting the proposed coalition. Among the six Gulf Arab states, Oman and the United Arab Emirates were not listed among the countries backing the statement.

The announcement comes a day after two sources familiar with the deliberations told Reuters that Saudi Arabia was seeking to build an international coalition to protect Red Sea shipping from Houthi attacks.

The Houthis said on July 20 they would impose a naval blockade on Saudi Arabia in the Red Sea, and have since claimed a series of attacks on Saudi-linked shipping. Saudi Arabia has responded with air strikes on what it said were Houthi military facilities in Yemen’s Hodeidah used to threaten commercial shipping.

The Red Sea tensions mark the latest front in the wider Iran war, with attacks on shipping spreading beyond the Gulf and pushing oil prices higher.

The Bab el-Mandeb Strait, linking the southern Red Sea with the Gulf of Aden and the Indian Ocean, is a key maritime chokepoint for global trade and energy shipments.

The European Union launched a naval mission in the Red Sea in 2024 to help restore and safeguard freedom of navigation after the Houthis disrupted maritime traffic by attacking vessels in what they said was solidarity with Palestinians during the Gaza war.

Pakistan has reiterated that dialogue and diplomacy remain the only viable path forward amid the prevailing tensions and hostilities in the Middle East.

At his weekly news briefing in Islamabad on Thursday, Foreign Office Spokesperson Tahir Andrabi said Pakistan welcomes all efforts aimed at sustaining cessation of hostilities and resumption of dialogue between Iran and the United States, state-run Radio Pakistan reported.

“Pakistan is engaged and will continue to play its role in this regard. Negotiations between the parties are ongoing to normalise the situation,” he said.

The spokesperson said Pakistan is doing utmost to bring the parties back to Islamabad Memorandum of Understanding (MOU) so that all irritants can be removed in the light of the spirit of the Islamabad MOU and Pakistan-Qatar Joint Statement of 22nd June.

Pakistan encourages the parties to exercise maximum restraint and fully adhere to their commitment to resume technical level talks for the implementation of Islamabad MOU, he said.

When asked about DW’s documentary on Pakistan’s nuclear security programme, the spokesperson rejected it as misleading and speculative commentary of biased sourcing. He said the documentary reflects either a profound misunderstanding or a deliberate disregard of the history, evolution and rationale of Pakistan’s nuclear programme.

The spokesperson said Pakistan has full confidence on the robustness of its command and control architecture as well as comprehensive technical, legal and institutional mechanism governing the nuclear safety and security and its wider nuclear programme.

He emphasised that these arrangements meet the highest international standards and have been consistently acknowledged by independent international experts.

To a question, Tahir Andrabi said the decision by Indian government to block access to social media accounts of Pakistan TV Digital as well as other social media accounts, is entirely in keeping with its established pattern of suppressing information.

He said international community, including representative media organisations, should take full cognizance of the Indian government’s curbs on the media.

WASHINGTON/CAIRO: The US military said it struck dozens of Islamic Revolutionary Guard targets in Iran, including military command centres and drone facilities, in a two-hour operation launched after Tehran fired ballistic missiles at US forces in the Middle East.

The operation began at 0000 GMT and ended at 0200 GMT on Thursday, US Central Command (CENTCOM) said.

“The strikes aimed to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighbouring Gulf countries,” CENTCOM said in a statement.

Iran’s state media reported that three people were killed in US strikes on Qeshm Island.

Jordan’s armed forces said on Thursday that they had thwarted an Iranian attempt to target the kingdom, intercepting five missiles.

The US strikes came after Iran confirmed on Wednesday that it had fired ballistic missiles at US troops in Jordan.

CENTCOM said all of the missiles were intercepted.

US bases in Jordan have lately become primary Iranian targets.

Earlier on Wednesday, US and Saudi forces launched strikes against Iran-aligned groups in eastern Iraq, in retaliation for drone attacks on Saudi oil targets launched from Iraq.

US strikes Iran as widening war engulfs more countries

The joint attack marked the first time Riyadh has publicly joined strikes alongside Washington.

In Egypt, a drone hit a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment on Wednesday.

A statement from Egypt’s Petroleum Ministry confirmed a fire at the port but made no mention of a drone attack. It was not immediately clear who was responsible.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict, after the Iran-aligned Houthis in Yemen declared a naval blockade last week on Saudi Arabia.

The war began in February, when the US and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks.

A temporary ceasefire agreement in June collapsed amid renewed fighting over the Strait of Hormuz, a crucial waterway that Iran says it now controls.

Trump said he would hit Iran hard for firing missiles at US forces, but that Washington was also still seeking a peace deal to end a conflict that has roiled global energy and finance markets with the choking of the Strait of Hormuz.

The waterway — which carried a fifth of global oil and liquefied natural gas before the war on Iran — lies between Oman and Iran, linking the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond.

The strait has become the main hurdle in peace talks and a flashpoint for repeated escalations in the conflict.

Iran said on Wednesday that it struck three tankers attempting to transit through the strait along an unauthorised route and that it controls the strait.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on Tuesday.

But Iran has rejected the Omani proposal.

Oil prices shot up on Wednesday in one of the sharpest spikes of the five-month war.

Brent crude futures rose more than 8% to push the benchmark well above $90 a barrel, reversing much of a plunge earlier this week when Trump had unexpectedly halted US strikes.

Oil slips as markets look for cues on Gulf supplies

On Thursday prices retreated slightly.

‘Death to America’ shouted in Iraq

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted “Death to America!” as they carried the bodies of slain fighters in body bags.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four of Iran’s Revolutionary Guards advisers had been killed in the strikes on Iraq.

After the joint attacks, Saudi Arabia’s defence minister met Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further by attacking Yemen’s Houthis and carrying out more strikes against Iran-aligned militias in Iraq, two sources told Reuters.

US-Saudi strikes hit Iran-backed targets in Iraq: Drone hits US storage tanker at Egyptian port

One of the sources added that such escalation would open the door to “major unknown risks.”

The White House and Saudi embassy in Washington did not immediately respond to a request for comment.

LONDON: The US carried out fresh strikes in Iran on Wednesday, the US military said, further intensifying a five-month-old war that was already expanding beyond its main fronts to embroil additional countries in the region.

“US forces began launching strikes against Iran at 8:00 p.m. ET today (0000 GMT),” US Central Command said in a statement.

“The strikes are a powerful response to yesterday’s attempted Iranian attacks on US forces based in the Middle East.”

US-Saudi strikes hit Iran-backed targets in Iraq: Drone hits US storage tanker at Egyptian port

Earlier on Wednesday, a drone hit a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment, while US and Saudi forces launched strikes against Iran-aligned groups in eastern Iraq and Iran fired missiles at US troops in Jordan.

A statement from Egypt’s petroleum ministry confirmed a fire at the port but made no mention of a drone attack. It was not immediately clear who was responsible.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict, after the Iran-aligned Houthis in Yemen last week declared a naval blockade on Saudi Arabia.

The US strikes in Iran on Wednesday followed President Donald Trump’s vow earlier in the day to retaliate against Iran for firing on US troops.

“So it’s our turn,” Trump told reporters at the White House, promising to “hit them very hard” even as he again said Washington would continue to aim for a peace deal with Tehran.

Iran confirmed overnight that it had fired on US bases in Jordan and at ships in the Strait of Hormuz, and also spurned an Omani proposal to jointly manage the strait, a critical global shipping route for oil and gas.

The war began in February, when the US and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed amid renewed fighting over the strait, which Iran says it now controls.

Oil prices shot up on Wednesday in one of the sharpest spikes of the five-month war. Brent crude futures rose more than 8% to push the benchmark well above $90 a barrel, reversing much of a plunge earlier this week when Trump had unexpectedly halted US strikes.

‘Death to America’ shouted in Iraq

The joint US-Saudi attacks marked the first time Riyadh has publicly joined strikes alongside Washington.

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted “Death to America!” as they carried the bodies of slain fighters in body bags.

Washington and Riyadh said they struck Iran-backed armed groups in Iraq in retaliation for drone attacks on Saudi oil targets launched from Iraq.

After the joint attacks, Saudi Arabia’s defense minister met with Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further by attacking Yemen’s Houthis and carrying out additional strikes against the Iran-aligned militias in Iraq, two sources told Reuters.

One of the sources added that such escalation would open the door to “major unknown risks.” The White House and Saudi embassy in Washington did not immediately respond to a request for comment.

US officials have privately cautioned that resuming major combat operations against Iran would carry risk given the negative impact on stocks of munitions.

The Center for Strategic and International Studies, a Washington-based think tank, estimated this week that the US military has fewer than 1,000 Patriot interceptor missiles and fewer than 250 THAAD interceptors – two key air defense systems.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four Iranian Revolutionary Guards advisers had been killed in the strikes on Iraq.

Iraq’s dangerous rift

The strikes on Iraq expose a dangerous rift in that volatile country. The Shi’ite-led government is one of the few in the world to balance close military and diplomatic ties with both Tehran and Washington, but those divided loyalties are a constant source of tension and frequent domestic unrest.

The office of Prime Minister Ali al-Zaidi, who took power just two months ago, urged the parties involved to avoid escalation and said he wanted to keep the country out of regional conflicts.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

The deep ties between Iran and Iraq, the two biggest Shi’ite-majority countries, are on display this week as hundreds of thousands of Iranian religious pilgrims head to shrines in Iraq for an annual observance of mourning for martyrs.

Hours before launching the attacks on Iraq, the US military said its air defences had averted a surprise Iranian attack on US troops in the region.

Jordan’s military said it had shot down five Iranian missiles. US bases in Jordan have lately become primary Iranian targets, where three US service members were killed this month in the worst US losses since March.

Iran’s Revolutionary Guards said they had fired several ballistic missiles at US military installations in Jordan, and had struck three tankers that were attempting to transit through the Strait of Hormuz along an unauthorised route.

LONDON/CAIRO: A drone hit a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment on Wednesday, in what could mark a widening of the Middle East conflict beyond the areas directly involved in the fighting.

A statement from Egypt’s petroleum ministry confirmed a fire at the port but made no mention of a drone attack.

It was not immediately clear who was responsible. The drone hit floating storage tanker Energos Winter, causing a fire that then spread to another vessel, three trading sources familiar with the incident said. The fire was dealt with immediately with no casualties, the petroleum ministry said.

The incident came amid a sharp escalation in the conflict, with Iran firing missiles at US forces in Jordan and the United States and Saudi Arabia striking Iran-backed armed groups in Iraq.

Trump says US to hit Iran ‘hard’ after attack on bases in Jordan: Fox News

Alongside Yemen’s Houthi group declaring a naval blockade on Saudi Arabia, the latest exchanges suggest the conflict is spreading further than it has since US and Israel started bombing Iran in February.

US President Donald Trump vowed to retaliate against Iran for firing on US troops days after he halted air strikes.

“We’ll be hitting them hard,” Fox News quoted Trump as saying. “We’re going to beat the fucking shit out of them.” Iran confirmed overnight that it had fired on US bases in Jordan and at ships in the Strait of Hormuz, and also spurned an Omani proposal to jointly manage the strait.

Trump had said operations against Iran would last only a few weeks when he launched them in February but fighting has now gone on for five months with no end in sight.

‘Death to America’ shouted in Iraq

The joint US-Saudi attacks also mark the first time Riyadh has publicly joined strikes alongside Washington.

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted slogans and “Death to America!” as they carried the bodies of slain fighters in body bags. Washington and Riyadh said they struck the Iran-backed armed groups in Iraq in retaliation for drone attacks on Saudi oil targets launched from Iraq.

It was the first major US military action in the Middle East since last Friday, when Trump abruptly suspended an intensive bombing campaign after 13 days, having been advised by commanders that the strategy had run its course.

US officials have privately cautioned that resuming major combat operations against Iran would carry risk given the negative impact on stocks of munitions.

The Center for Strategic and International Studies, a Washington-based think tank, estimated this week that the US military has fewer than 1,000 Patriot interceptor inventories and fewer than 250 THAAD interceptors– two key air defence systems.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four Iranian Revolutionary Guards advisers had been killed in the strikes on Iraq.

Iraq’s dangerous rift

The strikes on Iraq expose a dangerous rift in that volatile country. The Shi’ite-led government is one of the few in the world to balance close military and diplomatic ties with both Tehran and Washington, but those divided loyalties are a constant source of tension and frequent domestic unrest.

The office of Prime Minister Ali al-Zaidi, who took power just two months ago, urged the parties involved to avoid escalation and said he wanted to keep the country out of regional conflicts.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

The deep ties between Iran and Iraq, the two biggest Shia-majority countries, are on display this week as hundreds of thousands of Iranian religious pilgrims head to shrines in Iraq for an annual observance of mourning for martyrs.

US says it averted Iranian attack on its troops

Hours before launching the joint attacks with Saudi Arabia on Iraq, the US military said its air defences had averted a surprise Iranian attack on US troops in the region.

Jordan’s military said it had shot down five Iranian missiles. US bases in Jordan have lately become primary Iranian targets, where three US service members were killed this month in the worst US losses since March.

Iran’s Revolutionary Guards said they had fired several ballistic missiles at US military installations in Jordan, and had struck three tankers that were attempting to transit through the Strait of Hormuz along an unauthorised route.

WASHINGTON: The United States on Wednesday issued another round of Iran-related sanctions, taking aim at Iran’s efforts to “monetize the Strait of Hormuz” with designations of 10 entities and eight more tankers, the US Treasury Department said.

Six of the entities targeted for sanctions were based in China, it said.

The sanctions followed a vow by US President Donald Trump earlier on Wednesday to hit Iran hard, according to an interview with Fox News, after the US military said it had intercepted multiple ballistic missiles launched by Iran toward American forces in the Middle East. The United States and Saudi Arabia jointly struck Iran-backed groups in Iraq on Wednesday.

Treasury’s Office of Foreign Assets Control designated two firms, the Persian Gulf Marine Insurance Co and HormuzSafe Marine Services Authority, which it said were integral to an Iranian scheme to extract digital assets and other revenue from ships transiting the Strait of Hormuz through various insurance policies.

“With its economy in freefall and inflation in the triple digits, the regime is desperate for cash,” said Secretary of the Treasury Scott Bessent.

“The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression, and repression,” Bessent said, referring to the Islamic Revolutionary Guard Corps.

The new sanctions are part of a broader push by the Trump administration to leverage both economic tools and military strikes to intensify pressure on Iran and end a deeply unpopular war that has dragged Trump’s approval ratings lower.

“The Iran war demonstrates that this administration will use US economic and military power in concert,” said Jess Hoversen, a former OFAC official who is now chief economist at Column, a digital platform bank.

OFAC has moved quickly to designate maritime logistics, currency exchange infrastructure, and procurement networks, even as the US military has increased its strikes, she said.

“Treasury is moving at an operational tempo, and combining military strikes with targeted sanctions could be a template for future conflicts,” Hoversen said.

Since the start of 2026, OFAC has sanctioned over 100 vessels linked to Iran’s shadow fleet, which has been used to keep oil revenue flowing despite international sanctions.

NEW YORK: Oil prices climbed about 7 percent on Wednesday as airstrikes resumed in the Middle East, adding to worries about dwindling supply as US government data showed domestic crude inventories fell to a multi-year low. Brent futures settled USD 6.65, or 7.91 percent, higher to USD 90.74 a barrel. US West Texas Intermediate crude gained USD 5.20, or 6.56 percent, to USD 84.46 a barrel.

The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, blaming them for drone attacks on Saudi oil facilities. The strikes came hours after the US military said it had averted a surprise Iranian attack on US troops in the region.

Iran said it had fired on ships in the Strait of Hormuz and at US bases in Jordan. In Egypt, explosions hit a natural gas loading port on the Mediterranean Sea, and British maritime security company Ambrey said a US-owned floating storage tanker there had been hit by a drone.

READ MORE: Oil jumps nearly 7% on escalating Middle East airstrikes

“The market is rapidly pricing in the enhanced risk to supplies in the region once again,” said John Kilduff, partner at Again Capital. Prices surged even higher after President Donald Trump, in an interview with Fox News, promised further strikes against Iran. The US issued another round of Iran-related sanctions, taking aim at Tehran’s efforts to “monetize the Strait of Hormuz” with designations of 10 entities and eight more tankers, the US Treasury Department said.

Strait of Hormuz in Focus

Tehran has ruled out Oman’s proposal for regional joint management of the strait, a senior Iranian official told Reuters on Wednesday.

“We believe Brent oil prices will continue to whipsaw in the USD 80-USD 100 per barrel range in the near term as the conflict ebbs and flows in the Middle East,” said Suvro Sarkar, head of energy research at DBS Bank. Only a few commodity ships have transited the strait this week. Five transited on Wednesday through the Bab el-Mandeb Strait, an alternative route for Saudi oil shipments to Asia, and 39 on Tuesday.

That was the highest number since July 19, just before Yemen’s Iran-backed Houthi militants announced a maritime blockade of Saudi Arabia. The Houthis are also considering imposing fees on commercial ships sailing through the southern Red Sea, regional sources with knowledge of the matter told Reuters. China has held direct talks with the group to enable its tankers to sail through the region without being attacked, six sources with knowledge of the matter said.

“From what I can see, their success in stopping flows through the Bab el-Mandeb is nowhere near as effective as in the Strait of Hormuz, though it appears there are more ships entering than exiting,” said Scott Shelton, energy specialist at TP ICAP.

US crude oil inventories fell last week as energy exports remained robust and domestic demand firm, analysts said. Crude stockpiles dropped by 7.2 million barrels to 404.5 million barrels last week, the lowest level since 2018, the Energy Information Administration said on Wednesday. Analysts had expected a 1.3-million-barrel draw.

Further supporting prices, OPEC+ is likely to halt oil output increases for three months starting in October, sources told Reuters, after the producer group completes the scheduled return of barrels following voluntary cuts.

Oil markets have seen geopolitical scares before. More often than not, they fade as quickly as they emerge. Traders have become conditioned to discount war headlines unless barrels actually disappear from the market.

This time may be different.

Brent crude surged to a six-week high last week, inching towards the psychologically important $100 per barrel mark as the Middle East conflict continues to widen.

The initial risk premium stemmed from uncertainty surrounding the Strait of Hormuz, through which roughly a fifth of globally traded oil passes. But markets are now confronting an altogether different possibility: a second maritime chokepoint coming under threat.

The recent oil price movements suggest it is still hostage to the next missile flying in the region and on that scale, things remain very dicey.

Yemen’s Houthi movement has declared a naval blockade targeting Saudi Arabia, threatening shipping through the Bab el-Mandeb Strait at the southern entrance to the Red Sea.

Tankers have already turned back following the warnings, while attacks on Saudi oil tankers have raised the prospect that the world’s largest oil exporter could face disruptions to one of its principal export corridors.

That changes the equation.

For months, markets viewed the Red Sea as an alternative should Hormuz become constrained. Now, the two risks are becoming intertwined. Hormuz threatens Gulf exports. Bab el-Mandeb threatens the alternative route.

The result is not merely fewer barrels reaching consumers, but a sharp increase in shipping costs, insurance premiums, transit times and, ultimately, the geopolitical risk premium embedded in crude prices.

Equally worrying is the absence of a credible off-ramp.

Diplomatic engagement appears frozen. Each military escalation has been met with another, and negotiations remain off the table. Markets are no longer asking whether tensions will ease tomorrow. They are increasingly pricing the possibility that elevated geopolitical risk becomes the new normal for weeks, if not months.

For Pakistan, the implications are straightforward. Higher crude prices threaten to inflate the import bill, complicate inflation dynamics just as price pressures had begun to stabilise, and place fresh strain on the external account.

The government’s ambitious petroleum levy target may also become harder to navigate if retail price increases become politically difficult to pass through.

To be sure, Pakistan is entering this episode from a considerably stronger macroeconomic position than during the 2022 energy shock. The current account is healthier, foreign exchange reserves are stronger, domestic demand remains subdued and the rupee is far more stable. Those buffers should cushion the initial blow.

But buffers are designed to absorb shocks, not prolonged stress.

A temporary spike towards $100 oil is manageable. A sustained period of elevated prices driven by simultaneous disruption risks at both Hormuz and Bab el-Mandeb would be a very different proposition.

The market is no longer merely paying for lost supply. It is paying for the growing possibility that two of the world’s most strategic energy corridors could remain under threat at the same time. That is a risk premium that is far harder to unwind.

RIYADH: A minister in Yemen’s internationally recognised government on Wednesday accused Houthis of working under Iranian guidance to establish a system to impose fees for ships transiting the Red Sea and the Bab al-Mandab Strait.

The narrow maritime artery has been a critical waterway for delivering vast quantities of Saudi crude to the international market, after energy exports were largely choked off by fighting in the Strait of Hormuz.

Information minister Moammar al-Eryani described “the move as a dangerous escalation aimed at transforming one of the world’s most strategic maritime corridors into a permanent source of funding for the militia’s military and terrorist activities”.

Eryani said the assessment was provided by recently obtained “confirmed intelligence” indicating that Iran’s Revolutionary Guards were helping manage the effort.

“The intelligence indicates that IRGC experts and advisers are directly involved in designing the technical and administrative framework of the project,” the minister added in comments exclusive to AFP.

He added that this would include “the establishment of a dedicated entity responsible for collecting payments from shipping companies and commercial vessels”.

Anxieties are growing across the Gulf that the Houthis are hoping to copy Iran’s playbook in the Strait of Hormuz by monetising access to the Bab al-Mandab Strait – a move likely to send world energy markets into further disarray.

Last week, the Houthis announced a maritime blockade of Saudi Arabia and have since claimed attacks targeting Saudi tankers and oil infrastructure.

The blockade has threatened Saudi Arabia’s ability to export millions of barrels of crude a day, cutting off the kingdom’s only other maritime route following Iran’s parallel blockade of the Strait of Hormuz.

Iran is expected to receive within weeks a first shipment out of up to 400 Chinese-made shoulder-fired air-defence missile launchers, three sources familiar with the deal told ​Reuters, as it rebuilds its defences amid war with the United States.

The purchase, valued at $60-70 million, is one of Tehran’s largest-known efforts to strengthen its short-range air ‌defences since the outbreak of its war with the US and Israel, which exposed gaps in Iran’s ability to protect military sites and strategic infrastructure.

The contract covers the purchase of between 300 and 400 man-portable air defence systems (MANPADS), including Chinese-made QW-12 and FN-16 missiles, the sources said.

The deal was signed with Zhongqing Baoshang International Investment, a Hong Kong-based company that the sources said was acting as an intermediary between the Iranian ​side and the Chinese supplier.

Iran needs to rearm after months of war

The sources spoke on condition of anonymity because of the sensitivity of the matter. Iran’s foreign ministry ​did not immediately reply to a request for comment.

China’s Foreign Ministry said: “The relevant reports are completely groundless. China has consistently played a role ⁠in promoting peace and ending the conflict.”

US military says US, Saudi forces struck sites of Iran-backed groups in Iraq

Beijing-based Zhong Qing Bao Shang Group, the parent company of Zhongqing Baoshang International Investment, did not immediately respond to an email request for comment ​on Tuesday.

Iran needs to rearm after months of fighting in which the U.S. and Israel have struck facilities linked to its missile, drone and air-defence programmes, and Tehran responded with barrages of ​ballistic missiles and drones.

The conflict has highlighted the challenge of defending fixed military and strategic sites against advanced aircraft and precision-guided weapons.

Washington abruptly suspended two weeks of bombardment on Saturday, but President Donald Trump said strikes would resume if negotiations failed to end the five-month-old conflict, which has in theory been in a state of ceasefire since April.

The delivery of hundreds of MANPADS would significantly expand Iran’s inventory of short-range ​air-defence weapons and underscore how military ties with China are deepening.

The sources cautioned that, although the agreement had been signed, delivery schedules, quantities and other implementation details could still change.

Under a ​plan agreed by the parties, deliveries will initially be by air from Urumqi in western China, then transiting through Pakistan to Iran, according to the sources, who did not clarify whether the transfers would take ‌place by ⁠air or by road.

Pakistan’s military public relations wing ISPR said: “Speculations of Pakistan being involved in supply of Air Defence weapons to Iran from China are absolutely concocted and false.“ A spokesperson for the Pakistani Foreign Ministry did not respond to requests for comment.

China and Iran explore land routes for delivery, sources say

While Iran has invested heavily in the past two decades in missiles, drones and radar, military experts say portable air-defence systems are important because they can be dispersed quickly, operated by small teams and relocated frequently, making them less vulnerable than fixed air-defence ​batteries.

A European security source said authorities in his ​country were aware of several contracts under ⁠discussion involving the possible sale of QW-series MANPADS to Iran, including QW-12, QW-18 and QW-19 systems.

A second security source, in the Middle East, said Iran had been seeking to purchase QW-12 and QW-18 missiles, but they were unaware that a deal had already been concluded.

The QW-12 ​and FN-16 are shoulder-fired, infrared-guided surface-to-air missile systems designed to engage low-flying aircraft, helicopters and drones. Their mobility allows them to be ​deployed rapidly around military installations, ⁠energy infrastructure and other sensitive sites.

Defence analysts regard the QW-12 as less capable than newer QW variants, including the QW-18 and QW-19, but say the systems can still provide an effective layer of short-range protection against drones and low-flying targets.

Iran’s Revolutionary Guards say it targeted US positions in the region in response to attack

Two Western intelligence sources and an Iranian official said Tehran had also explored the use of overland routes to move Chinese military supplies and dual-use components ⁠more discreetly and ​reduce the risk of disruption.

The procurement highlights the Islamic Republic’s continuing reliance on a combination of domestic weapons ​production and foreign suppliers despite years of sanctions and restrictions on defence-related imports.

Reuters previously reported that Iran was close to securing a separate agreement with China to acquire anti-ship cruise missiles, according to people familiar with those negotiations. Reuters ​could not determine whether the agreement went through.

WASHINGTON: The US military said on ​Tuesday it conducted ‌strikes with Saudi Arabia’s armed forces in ​Iraq against militant ​groups aligned with Iran.

Iran’s Revolutionary Guards say it targeted US positions in the region in response to attack

“US ⁠Central Command and ​the Saudi Arabian Armed ​Forces conducted precision strikes in Iraq, July 28, ​against Iran-aligned terrorists ​that the Islamic Revolutionary Guard ‌Corps (IRGC) ⁠directed to attack US forces and Saudi energy infrastructure,” the ​US ​Central ⁠Command said in a statement.

The attacks ​against US ​forces ⁠were not successful, the U.S. military said.

WASHINGTON: US President Donald Trump voiced irritation with Benjamin Netanyahu ahead of their White House meeting on Tuesday, complaining that details of the Israeli prime minister’s planned talking points on Iran had surfaced publicly, in a fresh sign of strain between the two leaders.

Asked about reports that Netanyahu wanted to talk to him about Pickaxe Mountain, a fortified facility buried deep underground near one of Iran’s main nuclear sites, Trump said, using Netanyahu’s nickname, “I don’t need Bibi to tell me that. Bibi’s telling me that because he wants me to stay involved.”

“Why don’t you just tell it to me? Why do you have to announce it to the world?” Trump said in an interview with “Fox & Friends.”

The New York Post reported on Monday, citing a source in Jerusalem, that Netanyahu was expected to provide intelligence to Trump that Iran is building up its nuclear facilities at Pickaxe Mountain and is lying about wanting a peace deal.

Netanyahu’s office did not respond to requests for comment on Trump’s remarks.

Netanyahu hails talks, plays down strains

In a video released on social media following the meeting, however, Netanyahu described the meeting as “excellent” and “one of the best conversations” he has had with Trump.

“It was a conversation marked by full partnership, mutual support and a shared understanding of our common objective: to ensure that Iran does not obtain nuclear weapons, as well as other goals,” he said.

Photos posted by Netanyahu’s office on X showed the two leaders sitting beside each other in the Oval Office with wide smiles. They were joined by Vice President JD Vance, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth.

Trump met Netanyahu after first having brief closed-door talks with Ukrainian President Volodymyr Zelenskiy.

White House press secretary Karoline Leavitt described both meetings as “positive and productive.”

Relations with Zelenskiy have warmed as Ukraine has blunted Russian advances in their more than four-year-old war, while Netanyahu faces growing White House frustration over the lack of progress toward a broader settlement in the Iran conflict and criticism from some of Trump’s supporters who oppose deeper US involvement in the Middle East.

The Israeli and Ukrainian leaders were in Washington to attend a memorial service for US Senator Lindsey Graham, a hawkish Republican who was an influential advocate for both Israel and Ukraine in Washington.

Both the Ukraine war and the widening Middle East conflict are at critical junctures. After the collapse of a ceasefire in the Iran war, Trump says he has paused US airstrikes to give diplomacy another chance. Zelenskiy, meanwhile, has been buoyed by Ukraine’s recent successes.

Zelenskiy said after meeting Trump that it was important to step up diplomacy toward ending Russia’s war in his country.

US envoys Steve Witkoff and Jared Kushner - Trump’s son-in-law - have agreed to visit Ukraine for the first time as part of the effort to kick-start their mediation efforts with Russia, according to two sources familiar with the conversations.

Netanyahu seeks trump’s support for reelection

Netanyahu has run hot and cold with Trump, who at times has had to rein in the Israeli leader from attacking targets in Lebanon to try to weaken Iran-backed Hezbollah militants.

An acrimonious phone call in June in which the president called the prime minister “fucking crazy”, first leaked to the media and later publicly confirmed by Trump himself, laid bare the strains between the two leaders.

Sources familiar with the matter said Netanyahu aimed to get Trump’s support for his reelection campaign ahead of an October 27 vote.

They were also expected to discuss the Abraham Accords, the series of agreements Trump brokered to normalize diplomatic relations between Israel and the United Arab Emirates, Bahrain, Morocco and Sudan.

Trump wants to add Saudi Arabia to the accords and conditioned a civilian nuclear cooperation deal with the kingdom last week on Riyadh signing up. Riyadh has so far rejected joining the accords without a path toward Palestinian statehood.

Air defense and drone deal

Zelenskiy and Trump clashed repeatedly in the early months of Trump’s second term, but relations between the two have improved as Ukraine has had greater success in the war, including with increased attacks on Russia’s oil industry.

Zelenskiy said in a Telegram post after Tuesday’s talks that he had discussed with Trump licenses for producing interceptors for the US-made Patriot air defense systems on which Kyiv relies “and other ideas that could help.”

They had also been expected to discuss cooperation on drone production after an initial agreement on unmanned aerial vehicles.

TEHRAN: Iranian Foreign Minister Abbas Araghchi held separate phone calls on the Strait of Hormuz with his Omani and Saudi counterparts Badr Al-Busaidi and Faisal bin Farhan, state TV said Tuesday.

During the calls, “they stressed the need to strengthen cooperation and advance joint diplomatic efforts to establish stability in the region and eliminate the insecurity imposed on the Strait of Hormuz due to the aggressive actions of the United States,” the state broadcaster added.

Iran has maintained control over the strait since the start of the Middle East war on February 28, disrupting shipping through the vital conduit.

In recent weeks, fighting has also spread to involve Saudi Arabia and the Iran-backed Houthi rebels in Yemen.

The last few days have nonetheless seen a lull in hostilities in the region.

WASHINGTON/DUBAI: President Donald Trump said on Monday the United States was having “good ‌talks” with Iran and there was a chance of a deal over their conflict, but he warned that US strikes would resume if the negotiations failed to deliver.

Despite Trump’s optimism, Tehran appeared to quickly test the pause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.

Washington abruptly suspended a two-week campaign of air strikes on Iran on Saturday in Trump’s latest strategic U-turn in the five-month-old conflict.

“We’re having good talks,” he said. “I think there’s a good chance that something could happen, ​and if it does, good, if it doesn’t, we go back to doing what we were doing two days ago.”

At a campaign rally in Michigan later on Monday, Trump said of Iran: “You can’t bribe ​them. You’ve got to beat them, and we’ll beat the hell out of them. But we’ll see how it turns out. Right now, there are very friendly negotiations ⁠going on.”

Houthis say hit Saudi Arabia as Trump weighs harder Iran strikes

Iran’s Foreign Ministry spokesman Esmail Baghaei said on Monday that messages were still being passed between the sides through mediators and Iran had not forsaken diplomacy, but reports that it requested negotiations were “fabricated.”

“This is not in ​our DNA,” he said.

A senior Iranian official told Reuters on Sunday that Iran would halt its own attacks as long as Trump’s self-imposed ceasefire continued.

Iran’s central military command later on Monday accused the U.S. of threatening vessels and oil tankers ​in its territorial waters and of “attempting to implement an illegal maritime blockade”, which it said “constitutes an escalation of the conflict in the region.”

Saudi Arabia said it shot down drones aimed at petroleum targets, including in Riyadh. It said they had been launched from Iraq by Iran-backed armed groups, and it reserved the right to respond.

Separately, Iran’s Houthi allies in Yemen said they had targeted the East-West Pipeline carrying oil to Saudi Arabia’s main Red Sea port of Yanbu in retaliation for Saudi drone incursions.

Tehran also said ​it remained in control of the contested Strait of Hormuz, the key waterway for global energy supplies, which Trump has demanded vessels be able to pass through freely.

Oil prices tumble

Public disapproval of the war has been weighing on Trump ​and his Republican Party ahead of November midterm elections in which they have to defend slim congressional majorities.

A Reuters/Ipsos poll conducted over the weekend showed Trump’s approval rating ticking higher to 37%, up three points from last month when it tied ‌the lowest of ⁠his presidency.

However, just one in three Americans support the Iran war, the lowest Reuters/Ipsos reading since the conflict’s early days, with most saying Trump has failed to explain his goals.

Oil prices fall 1% as investors weigh pause in US strikes on Iran

The end of the US campaign after 13 successive nights of intensifying bombing and Trump’s remarks on talks sent oil prices tumbling.

US crude CLc1 fell 8.21% to $81.98 a barrel, and Brent LCOc1 fell to $87.77 per barrel, down 9.31% on the day.

Trump’s decision to suspend US attacks reflected advice from his military that the bombing had reached the limits of what it could achieve, according to a U.S. official and several US media reports.

Yemen Houthis claim strikes on Saudi oil tankers in Red Sea

The US official told Reuters military commanders had advised the president they were running out of targets ​and that the chairman of the Joint Chiefs of Staff, ​General Dan Caine, had expressed concern over the ⁠depletion of air munitions.

Trump dismissed suggestions that the U.S. faced munitions shortages, saying the military was rapidly rebuilding inventories depleted by shipments to Ukraine. He said he would like more of “the more sophisticated stuff.”

Iran media say six ships turned back

Iranian state media outlets cited an “informed source” as saying that Iran had turned around six “offending ships” on Monday ​that had attempted to cross the Strait of Hormuz without permission.

Trump launched his renewed bombing campaign to punish Iran after Tehran fired on ships using a ​route promoted by the United States, ⁠which told vessels to sail close to the coast of Oman.

Iran says ships may pass only through a Hormuz channel that runs closer to its own coast, which it controls and where it intends to impose transit fees.

The two weeks of renewed US bombing killed scores in Iran and destroyed bridges and tunnels across the south as well as military targets.

Four U.S. service members were killed in return fire against US bases in neighbouring states. Iran also struck civilian infrastructure in ⁠Gulf countries, calling ​it retaliation for US strikes.

Houthis say they don’t seek to close key Bab al-Mandeb Strait

It remains unclear what leverage Washington can exert to break Iran’s grip on the strait.

Washington and Tehran reached ​an agreement in June on a framework for talks meant to take place by the end of August to resolve major issues such as Iran’s nuclear programme.

But they have disputed the meaning of the memorandum’s language about the strait, with Washington insisting it requires Tehran to allow free ​travel, while Iran says it grants it the authority to supervise transit.

NEW YORK: Oil prices fell on Monday, settling at their lowest levels in over a week, after the US abruptly suspended a campaign of air strikes against Iran over the weekend, raising hopes of a diplomatic solution that would allow shipping to resume in the Strait of Hormuz.

Brent crude futures fell USD 8.42, or 8.7 percent, to settle at USD 88.36 a barrel, the lowest since July 17. US West Texas Intermediate crude futures fell USD 6.70, or 7.5 percent, to close at USD 82.61, the lowest since July 16.

Brent futures last week surpassed USD 100 a barrel as the conflict, which has reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea. This hindered exports from the world’s top exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.

READ MORE: Oil prices fall to one-week low after US pauses attacks on Iran

The US ambassador to the United Nations, Mike Waltz, told “Fox News Sunday” and other US media that President Donald Trump had decided to pause US attacks to allow more time for diplomacy.

Trump on Monday said the US is holding “good talks” with Iran, and that “there’s a good chance that something could happen” in regard to a potential deal. He also threatened “strong military action” if diplomacy fails. Oil prices fell throughout Monday’s session, as Saudi Arabia’s air defenses intercepted and destroyed drones launched from Iraq. Yemen’s Houthis claimed they had targeted sensitive crude oil supply and transport sites linking eastern Saudi Arabia to the critical Red Sea oil export hub of Yanbu.

“The market seems to be forever seeking good news from an arena that really is not providing any,” said PVM analyst John Evans. “A stay of military strikes might seem an improvement, but it does not come with any guarantees that oil will soon flow from the area,” he said. He said oil futures will only continue lower if elevated price levels again dent demand, not due to “questionable mini-ceasefires”.

Outlook uncertain with no signed framework

Industry analysts said they expect oil markets to be highly volatile in response to updates around the unofficial ceasefire between the US and Iran, and warned that the physical flow of oil remains constrained despite the truce.

“Shipping volumes remain heavily depressed after a brief mid-June ceasefire, limiting Middle East exports and forcing longer, costlier reroutes via Suez for Saudi Red Sea cargoes,” said Alex Hodes, director of energy market strategy at brokerage StoneX. Fewer than 10 commodity vessels passed through the Strait of Hormuz daily during the weekend, shipping data from Kpler showed.

“Flows fell to something like 15 percent of pre-war levels, against a normal run rate of roughly 20 million barrels a day of crude, condensate and products. A political pause doesn’t put a single extra barrel on the water right here and now,” said Ole Hvalbye, market analyst at SEB Research.

In addition, ship traffic through the Bab el-Mandeb strait fell on Sunday after Yemeni Houthis attacked Saudi oil installations along the Red Sea coast, although a third Chinese supertanker exited via the waterway.

Elsewhere, Kazakhstan, among the world’s 10 biggest oil producers, has more than halved its daily oil output following the closure of the main exporting terminal in Russia’s Black Sea over drone attacks, an industry source said on Monday.

The energy ministry later said the Caspian Pipeline Consortium’s Black Sea terminal had resumed oil loadings.

KARACHI: Despite signs of improvement in Pakistan’s macroeconomic outlook, the State Bank of Pakistan (SBP)’s Monetary Policy Committee (MPC) on Monday left the policy rate unchanged at 11.5 percent, citing heightened external risks following the resurgence of conflict in the Middle East.

Addressing a press conference after the meeting of MPC at SBP head office, SBP Governor Jameel Ahmad said that proactive macroeconomic management, underpinned by a prudent monetary policy stance and sustained fiscal consolidation, has helped effectively manage the ongoing supply shock and preserve macroeconomic stability, despite a challenging global environment.

In order to further enhance the transparency of the monetary policy decision-making process, now onwards, the voting pattern will also be disclosed in the monetary policy statement and in Monday meeting, MPC unanimously decided to keep the policy rate unchanged, he said.

READ MORE: Monetary policy today

During the meeting the committee also observed that the earlier de-escalation had led to a decline in global oil prices and a relative ease in supply chain disruptions, which resulted in some improvement in recent economic indicators.

Headline and core inflation moderated in June, though both remained at elevated levels. At the same time, incoming high frequency indicators pointed to some pickup in economic activity, whereas external account pressures remained moderate.

“Taking into account these developments and evolving risks, the MPC assessed that the current monetary policy stance remains appropriate to guide inflation towards the target range of 5-7 percent over the medium term,” he said.

Jameel Ahmad highlighted several positive economic developments since the last monetary policy meeting. He said the SBP’s foreign exchange reserves exceeded the end-June 2026 target of USD18 billion, supported by continued foreign exchange purchases, a small current account deficit during FY26, and the realisation of planned official inflows.

He noted that Pakistan’s sovereign credit rating was upgraded to “B” by Standard & Poor’s, while the latest sentiment surveys showed easing inflation expectations among both consumers and businesses.

He added that the Federal Board of Revenue (FBR) achieved its revised tax revenue target for FY26. However, he pointed out that the International Monetary Fund (IMF) has raised its global inflation forecasts for calendar years 2026 and 2027 in its latest World Economic Outlook, citing rising global commodity prices.

He informed that committee assessed that the macroeconomic outlook has improved from its previous meeting, though it remains susceptible to heightened risks, particularly following the resurgence of conflict in the Middle East.

“We are committed to achieve the objective of price stability and will continue to closely monitor incoming data and evolving developments,” Governor SBP said.

The committee also emphasised the importance of further strengthening external and fiscal buffers, and accelerating structural reforms as these are necessary to strengthen resilience to recurring shocks, enhance productivity and support higher and sustainable economic growth.

Governor SBP informed that headline inflation eased to 11.1 percent Year-on-Year (YoY) in June 2026 from 11.7 percent in the previous month primarily attributable to pass-through of the decline in global energy prices to the domestic consumers, alongside favorable electricity tariff adjustment. Core inflation also moderated to 8.4 percent, but continues to remain elevated.

However, food inflation increased in June following a significant increase in prices of wheat and allied products as well as key perishable items, he mentioned.

Going forward, the recent increase in global commodity prices, higher input costs and domestic food price pressures, are likely to keep inflation above the target range over the next few months.

Inflation is subsequently projected to ease gradually and stabilise near the upper bound of the 5-7 percent target range by June 2027. This outlook is subject to multiple risks, including volatility in global energy prices, unanticipated adjustments in administered energy prices, unfavorable climate conditions and potential fiscal slippages, he said.

On agriculture side, he said that initial assessment indicates significant increase in expected sugarcane output, which is likely to more than offset lower projected cotton production. Better prospects for the commodity-producing sectors would also generate some positive spillovers for the services sector. Moreover, budgetary incentives, continuation of import tariff rationalisation and pickup in private sector credit are likely to further support economic activity.

Lower current account deficit and higher remittances inflows helped SBP strengthen its foreign exchange reserves to USD 18.4 billion by end of June and significantly reduce forward liabilities. However, with substantial debt repayments in recent weeks, the foreign exchange reserves have reached around USD 17.3 billion as on July 17, he mentioned.

According to monetary policy statement, as of July 10, broad money (M2) growth moderated to 13.2 percent YoY from 15.2 percent at the time of the last MPC meeting, reflecting lower contributions from both NDA and NFA of the banking system. Within NDA, growth in net budgetary borrowing slowed, while private sector credit growth accelerated to 14.9 percent, supported by easing financial conditions.

This increase in credit was broad based and noted across working capital, fixed investment and consumer financing. The major borrowing sectors included textiles, telecommunications, and wholesale and retail trade. Furthermore, the committee noted a moderation in reserve money growth, mainly reflecting the post-Eid reversal in currency in circulation, which, along with robust growth in bank deposits, contributed to a decline in the currency-to-deposit ratio.

Copyright Business Recorder, 2026

TEHRAN: US President Donald Trump on Monday voiced optimism at the prospects for a negotiated peace deal with Iran, as the two sides held their fire for a third consecutive day.

Fighting between the longtime foes has been paused since early Saturday after 13 nights of renewed US strikes on the Islamic republic sparked by a breakdown in diplomacy over Iran’s blockade of the Strait of Hormuz.

But the US leader expressed hope that renewed diplomacy could bring an end to the war that began in late February with a wave of US-Israeli strikes, rattling both the region and the global economy.

READ ALSO: Trump says he is ready for military action if Iran talks fail, reports

“I have a lot of patience… We’ll see what happens,” he said aboard Air Force One.

“I think there is a good chance that something could happen.”

Tehran had earlier denied that there were any direct talks with the US to end the conflict.

“Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States,” said Iranian foreign ministry spokesman Esmaeil Baqaei.

Trump told the US news outlet Axios that mediating countries had asked him to hold fire to give diplomacy a chance, adding: “We are in very deep talks with Iran.”

Aboard Air Force One he said that if the new efforts failed, “we go back to doing what we were doing” before the pause in fighting.

On that subject, he dismissed concerns that US ammunition stockpiles were running low nearly five months after war broke out.

“We have a lot of ammunition. We have a lot of the mid-level stuff too, more than we could ever use no matter what,” he said.

Saudi Arabia attacked

Despite the recent lull, Saudi Arabia came under attack on Monday, with its defence ministry saying it had intercepted several drones fired by Iran-linked groups in Iraq targeting oil facilities.

No group claimed responsibility, but Riyadh called on Baghdad to prevent such attacks from being launched from its territory.

Pakistan, which has been mediating a resolution to the Middle East war, condemned the drone attacks, saying they “pose a grave threat to peace and stability” in the Middle East.

Yemen’s Iran-backed Houthi rebels also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the kingdom’s drones. Riyadh is yet to comment on the claim.

Saudi Arabia and other Gulf nations accused pro-Iran militias in Iraq of launching waves of attacks on their territory during the conflict’s earlier phase, but the groups haven’t claimed any attacks in the region since the resumption of hostilities.

Elsewhere, the Israeli military, which has not joined the recent fighting, said it had intercepted two drones near the Jordanian border and was investigating where they had been launched from.

Global stock markets meanwhile rallied and oil prices tumbled on Monday after the pause in strikes between Washington and Tehran.

It came as respite for Gulf shipping and the oil industry, with international benchmark Brent dropping six percent to around $86 a barrel.

Control of the Strait of Hormuz remains a hurdle to any peaceful resolution, and Iran insists on managing the crucial conduit for oil and gas.

Its powerful Revolutionary Guards have been stopping vessels trying to transit the trade route in recent days, including six that state television on Monday said had sailed outside Iran’s designated route.

Tehran says it has held talks in recent days with Oman, which also borders the strait, on “common principles and operational mechanisms” to ensure the safe passage of shipping.

In June, Muscat and Tehran said they would discuss imposing service fees, a move Washington opposes.

But Muscat also angered Iran after saying vessels could transit the Hormuz strait via its waters, with Tehran responding by attacking ships.

Iran’s foreign ministry on Monday said the United States was not involved in the recent discussions with Oman.

Instead Baqaei criticised Washington, saying its conduct in recent years has “resembled that of a mafia gang that adheres to no rules or laws”.

“So long as such behaviour by the United States continues, we cannot be hopeful about the emergence of a reasonable process,” he said.

OCCUPIED JERUSALEM: The Israeli military said it intercepted on Monday two drones near the Jordanian border and was investigating where they had been launched from.

Earlier this month, the military said Israeli and Jordanian forces had intercepted an Iranian missile fired toward the Jordanian city of Aqaba.

“A short while ago, the IDF intercepted two UAVs identified in the area of the Jordan border,” the military said on Monday.

Israeli settlers torch 2 mosques in West Bank

“The UAVs did not cross into Israeli territory. The origin of the launch is under review.”

Israel has not taken part in the latest round of hostilities between the United States and Iran.

SINGAPORE: Ship traffic through Bab el-Mandeb fell on Sunday after Yemeni Houthis attacked Saudi oil ‌installations along the Red Sea coast, while transit through the Strait of Hormuz stayed low over the weekend, shipping data from Kpler showed on Monday.

Eleven commodity vessels passed through the Bab el-Mandeb strait on Sunday, the lowest level in months, the data showed.

Red Sea traffic has ​been disrupted off the coast of Yemen since last week by the Tehran-aligned Houthis, who want to blockade ​Saudi exports, expanding the U.S.-Iran conflict that has already choked oil supply through the Strait ⁠of Hormuz.

The shipping disruption caused prices of physical crude cargoes in the Middle East, Europe and Africa to jump to ​two-month highs last week.

Seven of the vessels that passed through Bab el-Mandeb were oil tankers with three of them entering the ​Red Sea.

Iran threatens response to Ukraine attack on its ship in Caspian Sea

Two of them are very large crude carriers (VLCCs) heading to the port of Yanbu to load Saudi crude while the third is a Russian-linked ship, the data showed.

The four vessels that exited the Red Sea on Sunday included the Hong Kong-flagged VLCC New Explorer ​carrying 2 million barrels of Saudi and Emirati crude for eastern China’s Ningbo port, a tanker carrying 1 million ​barrels of Russian crude for China and a tanker with about 750,000 barrels of Saudi crude onboard for Pakistan, the data showed.

Another Hong ‌Kong-flagged ⁠VLCC New Pearl carrying 2 million barrels of Saudi crude is exiting the Red Sea via Bab el-Mandeb strait for eastern China’s Zhoushan port, the fourth Chinese supertanker to leave since the Houthis declared a naval blockade.

Associated Maritime Hong Kong, the manager for New Explorer and New Pearl, did not immediately respond to a request for comment outside office hours.

Houthi military spokesperson ​Yahya Saree said the group struck ​sites belonging to Saudi ⁠state oil company Aramco in the cities of Jizan and Yanbu on Saturday.

Hormuz

Fewer than 10 commodity vessels passed through the Strait of Hormuz daily over the weekend even though the ​U.S. and Iran have paused strikes in the Middle East, shipping data from Kpler showed.

Seven vessels ​transited on Sunday ⁠including three Iranian-linked oil products tankers that exited the Strait, the data showed.

US strikes Iran from south to north

On Saturday, there were only three vessels that passed through with their transponders switched off. These include a VLCC heading to Qatar to load oil, a liquefied petroleum gas tanker ⁠going to ​the Ruwais port in the United Arab Emirates to load a cargo ​and a tanker carrying Qatari naphtha that was heading to Japan, the data showed.

On Friday, seven vessels passed, mostly exiting the Gulf, including two VLCCs ​carrying crude from Iraq and the UAE and a tanker carrying fuel oil.

DUBAI/WASHINGTON: Iran will halt its own attacks as long as the United States does the same, a senior Iranian official told Reuters on Sunday.

The development comes as the United States pressed pause on its bombing campaign after President Donald Trump’s advisers told him they were running out of targets and expressed worries about depleting the US arsenal.

After 13 nights of intensifying US airstrikes on Iran, the Pentagon suspended the campaign late on Friday, with no US attacks reported on either Saturday or Sunday. Iran, which had been following each night of US attacks with its own strikes on neighbouring countries that host US bases, has also so far held fire for two days.

The Iranian official, speaking on condition of anonymity, told Reuters that Tehran’s position “remains ‘attack for attack’: if the attacks stop, Iran will also halt its operations. That message has already been conveyed to the United States.” The US ambassador to the United Nations, Mike Waltz, told “Fox News Sunday” and other US media that Trump had decided to pause US attacks to allow more time for diplomacy.

READ ALSO: Iran war spreads to Red Sea and Caspian, Gulf quiet as US forgoes strikes

“He’s giving talks some space, he’s giving it a little bit of room,” Waltz said, without providing further details.

US military officials in recent days have cautioned that bombings over the past two weeks meant to deter Iranian threats to shipping in the Strait of Hormuz — a narrow waterway that has become a key flashpoint in the war — had largely exhausted the pre-selected sets of targets, one US official said, speaking on condition of anonymity.

Resuming major combat operations remains an option, but General Dan Caine, chairman of the Joint Chiefs of Staff, has cautioned privately to Trump that it would carry risk given the negative impact on stocks of munitions, the official said. That includes interceptors used by US air defenses in the Middle East, the official added.

Caine’s office and US Central Command declined comment. US military officials have traditionally declined to comment on their private advice to a sitting US president, even in testimony to Congress.

On NBC’s “Meet the Press,” Waltz said the US military “has everything that it needs,” but also said that when Defense Secretary Pete Hegseth took over under the Trump administration, he “inherited a depleted situation.”

The senior Iranian source, who spoke on condition of anonymity, told Reuters that Tehran did not hold much hope that Trump’s decision to pause strikes represented a major shift in the US negotiating position.

“There is more scepticism than optimism about the halt in attacks. The prevailing view is that the pause is tactical rather than genuine. Iran has accumulated enough bitter experience with what it sees as US deception,” the source said.

‘Stuck in limbo’

For the past two weeks, US forces had been striking Iran nightly in what Washington said was retaliation for Iranian attacks on shipping in the Strait of Hormuz.

Iranian forces have responded to the US attacks by launching strikes at water desalination plants in nearby Gulf Arab states.

Iran says it aims to retain control of the strait, through which a fifth of global oil flows passed before the war.

The renewed US military campaign effectively torpedoed last month’s interim agreement aimed at ending the war. Trump’s decision to pause the strikes followed what several media outlets described as a meeting on Friday where Caine and other senior military and political advisers raised concerns.

CNN said Vice President JD Vance had expressed reservations. Axios reported that the overall commander of US forces in the Middle East, Admiral Brad Cooper, had advised halting the US bombing campaign because it had reached the limits of its effectiveness.

Residents of Iran remain apprehensive. Nader, 49, an import-export business owner in Tehran, said he doubted any pause in strikes would last.

“Everyone in the country is stuck in limbo,” he told Reuters by telephone. “Trump is playing games with Iran. He neither ends the war and leaves the region nor strikes decisively. It’s exhausting.”

DHAKA: Chronic gas shortages in Bangladesh, already compounded by the Middle East war, have worsened after an industrial accident disrupted supplies, affecting homes, businesses and key sectors such as the textile industry.

Jubaida Anjum Saba, an NGO worker in the capital Dhaka who cooks for her extended family of 10 people, told AFP that “we haven’t been getting cooking gas since Wednesday”.

That has left her “switching from one option to another, like sometimes using an induction stove, and at other times the clay oven” which she bought a few years ago for special occasions but now has to arrange firewood to use, she said.

Bangladesh has long grappled with an energy crisis, but the US-Iran conflict since February has exacerbated it, dealing a major blow to the South Asian country’s economy.

And on Wednesday, things took a turn for the worse when a fire hit one of Bangladesh’s two storage and regasification units in Moheshkhali.

Long queues have returned at the pump, with a popular ride-hailing app, Obhai, saying it has been receiving complaints from drivers of gas-run auto-rickshaws about the time it takes to refill.

The interruption is also likely to hit electricity generation, which is largely dependent on gas.

Md Rafiqul Islam of state-run energy firm Petrobangla told AFP they were “not sure” when gas supplies would return to normal.

Bangladesh currently imports about 30 percent of its natural gas needs.

According to Petrobangla sources, total gas demand is around 3.8 billion cubic feet per day, while daily supply had stood at 2.7 billion cubic feet since last year.

Following this week’s accident, supply has fallen further to 2.15 billion cubic feet a day.

Factories, especially the country’s flagship export sector of readymade garment manufacturing, appear to be among the biggest losers from the ongoing crisis.

“Dozens of factories are sitting idle for want of gas,” Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, told AFP.

Factory owners say they mostly depend on captive electricity generation, as the grid electricity they receive is often of poor quality, with voltage fluctuations frequently damaging machinery.

“For the last 10 days, the captive power plants have been almost idle, and the impact will be disastrous,” delaying shipments and denting profits, Hatem said.

KARACHI: The Pakistan Stock Exchange (PSX) remained under pressure for a third consecutive week ended July 24, 2026.

Escalating geopolitical tensions in the Middle East, particularly the Houthis’ announcement of a blockade in the Red Sea, dampened investor confidence and sent international Brent crude oil prices above US$100 per barrel for the first time in nearly two months, triggering broad-based selling across the market.

The benchmark KSE-100 Index declined by 2.7 percent on a week-on-week basis, losing 4,781.60 points to close at 171,021.20 points compared with the previous week’s close of 175,802.80 points. The sustained decline reflected persistent investor caution amid rising geopolitical risks, higher global energy prices and concerns over their implications for Pakistan’s inflation and external account.

The broader market also witnessed a notable erosion in value during the week. Total market capitalization at the Pakistan Stock Exchange declined by 2.6 percent to Rs19.278 trillion from Rs19.790 trillion recorded a week earlier, representing a loss of approximately Rs512.03 billion. In US dollar terms, market capitalization also fell 2.6 percent to US$69.38 billion from US$71.20 billion.

Business Recorder’s benchmark indices also remained under pressure throughout the week. The BRIndex100 opened at 19,299.72 points and closed at 18,716.85 points, registering a decline of 582.87 points.

The index recorded a weekly turnover of 3.012 billion shares, translating into an average daily turnover of approximately 602.40 million shares.

Similarly, the BRIndex30 retreated from 69,867.09 points to 67,530.25 points, shedding 2,336.84 points during the week. Total turnover in the index stood at 1.899 billion shares, averaging around 379.73 million shares per trading day.

Despite the weak equity performance, several macroeconomic developments remained supportive. S&P upgraded Pakistan’s sovereign credit rating to ‘B’ from ‘B-’, citing improving institutional stability and continued implementation of IMF-supported economic reforms.

During the week, the Oil and Gas Regulatory Authority (OGRA) shifted to a daily petroleum pricing mechanism. As a result, cumulative increases in petroleum prices reached Rs15.37 per litre (4.9 percent) for Motor Spirit and Rs24.31 per litre (6.9 percent) for High-Speed Diesel over the course of the week.

Pakistan also secured US$16.2 billion in external financing during FY26, while reports suggested the government was pursuing an additional US$10 billion support package from the United States to strengthen foreign exchange reserves and support macroeconomic stability.

Meanwhile, the State Bank of Pakistan’s foreign exchange reserves remained broadly stable at US$17.3 billion.

In the latest Treasury Bill auction, the government raised Rs768 billion against a target of Rs800 billion, while cut-off yields increased by as much as 50 basis points on longer-tenor papers, indicating cautious market expectations regarding interest rates.

Market liquidity weakened during the week as investors adopted a cautious stance. Average daily turnover on the ready market declined 5.9 percent to 696.04 million shares from 739.94 million shares a week earlier.

Average daily traded value dropped 19.2 percent to Rs27.74 billion from Rs34.34 billion, while average daily dollar value also fell 19.2 percent to US$99.81 million compared with US$123.53 million in the previous week.

Sector-wise trading activity remained heavily concentrated in refinery stocks, which accounted for 25 percent of total market volume during the week.

Investment Banks contributed 15 percent, followed by Technology & Communication with 9 percent, while Cement and Property sectors each accounted for 7 percent of total traded volume. The remaining 39 percent of activity was spread across other sectors.

Performance across sectors remained largely negative. Refineries emerged as the only major out performer, advancing 5.5 percent during the week. The Food sector declined 0.6 percent, while Commercial Banks and Automobile Assemblers each lost 2.5 percent.

The Power sector fell 2.6 percent. Exploration and Production companies lost 2.8 percent, Pharmaceuticals and Chemicals each declined 2.9 percent, while Cement and Engineering sectors fell 3.2 percent. Fertilizer stocks retreated 3.4 percent, Technology & Communication declined 3.6 percent, Textile Composite slipped 4.1 percent, and Oil Marketing Companies recorded the steepest decline among major sectors, losing 5.1 percent.

Despite the broader market weakness, a handful of stocks posted gains. YOUW emerged as the top performer, rising 8.9 percent to Rs5.60, followed by CNERGY which gained 4.9 percent to Rs10.29. PGLC advanced 4.3 percent to Rs15.91, Attock Refinery (ATRL) increased 2.2 percent to Rs919.68, Nestlé Pakistan rose 1.8 percent to Rs7,752.21, Pioneer Cement (PIOC) added 1.3 percent, while Ghani Glass (GHNI) gained 1.2 percent during the week.

On the losing side, SSGC suffered the steepest decline, plunging 14.1 percent to Rs24.85. SNGPL fell 8.6 percent, KTML lost 8.2 percent, LOTCHEM declined 7.9 percent, Maple Leaf Cement dropped 7.7 percent, Kohat Cement retreated 7.5 percent, while HGFA lost 7.2 percent.

Analysts said investor sentiment is likely to remain sensitive to developments in the Middle East, particularly movements in international oil prices and shipping routes, while market participants will also closely monitor domestic macroeconomic indicators, foreign inflows, and progress on external financing as key determinants of market direction in the coming weeks.

Copyright Business Recorder, 2026

WASHINGTON/ATHENS: The Iran war ​broadened over the weekend despite a pause in US strikes, as Yemen’s Iran-aligned Houthis attacked Saudi oil installations along the Red Sea coast and Iran ‌accused Ukraine of targeting one of its vessels in the Caspian Sea.

The US military said on Saturday its naval blockade against Iran “remains in full effect” but did not explain why it halted a streak of 13 nights of escalating strikes.

There were also no weekend reports of attacks by Iran on neighbors, similar to its daily rejoinders to the US attacks.

Asked about the pause, a senior official in ​President Donald Trump’s administration said Trump “has always been clear that his preference is diplomacy, but he has shown Iran what will happen if they fail to come ​to the table in a serious way.”

Trump has decided, for now, to back away from plans to ramp up attacks on Iran, ⁠the New York Times said on Saturday, citing two people briefed on the discussion.

The president and his advisers, the newspaper said, have concerns about expanding the conflict, depleting ​defense stockpiles, alienating Middle East Gulf allies and affecting energy supplies and the global economy.

Vice President JD Vance and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, ​both raised concerns about the US munitions stockpile with Trump during a White House meeting on Friday, a US official told CNN.

Operations are “on a hold,” a Department of Defense source told the broadcaster on Saturday.

Despite the Gulf lull, Saturday’s fighting between Iran’s Houthi allies and Saudi Arabia showed that the war, which has already disrupted energy supplies through the Strait of Hormuz, could affect a second major ​shipping route and reignite Yemen’s civil war.

Separately, Iran’s Foreign Ministry accused Ukraine of attacking an Iranian commercial vessel in the Caspian Sea, saying one sailor was killed and another injured.

The ​ministry summoned Ukraine’s chargé d’affaires in Tehran to protest over an attack it described as “hostile and criminal”, state news agency IRNA said.

The Iranian denunciation coincided with comments by Ukrainian President Volodymyr Zelenskiy that Kyiv had ‌noted Russia ⁠was passing on to Iran its satellite observations in the Middle East, to enable it to direct strikes in the region.

War threatens to spread to yemen

Houthi military spokesperson Yahya Saree said the group struck sites belonging to Saudi state oil company Aramco in the cities of Jizan and Yanbu on Saturday.

A large column of smoke rose from the direction of the Aramco refinery in Jizan, near the Yemeni border, video on social media verified by Reuters showed.

The refinery can process up to 400,000 barrels of crude oil ​daily.

Houthis say they don’t seek to close key Bab al-Mandeb Strait

Two Asia-based trading sources said they had been ​informed of potential damage to fuel ⁠and oil storage sites at Jizan. Aramco did not respond to requests for comment.

In Yanbu, two missiles aimed at oil installations were intercepted. Yanbu, Saudi Arabia’s main Red Sea oil port, has become a key route for Saudi oil skirting the Strait of Hormuz, ​which Iran has blockaded.

Saudi-led coalition strikes Hodeidah

In Yemen, officials said the air force of the Saudi-backed, internationally recognised government, which has ​opposed the Houthis for ⁠more than a decade, struck Houthi sites in the Marib and al-Jawf provinces.

The officials said both sides in Yemen’s civil war were mobilising forces along the front.

Saudi Arabia has led an Arab coalition battling the Houthis since the Iran-aligned fighters captured Yemen’s capital, Sanaa.

The civil war, in which famine and fighting killed hundreds of thousands, has been paused by a ceasefire since ⁠2022.

Saudi strikes target Yemen’s Hodeidah

But that ​truce broke down this month, with the Houthis effectively joining the wider war their Iranian allies have ​waged since being attacked by the United States and Israel five months ago.

The Houthis have declared a naval blockade of Saudi Arabia over the past week, and Houthi leader Abdul Malik al-Houthi said all Saudi oil ​facilities could be targets.

Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone conversation with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud on Saturday, during which the two leaders discussed the latest regional developments and reaffirmed the close ties between Pakistan and Saudi Arabia.

According to a statement shared by Dar on X, the two foreign ministers exchanged views on the evolving regional situation and underscored the importance of continued diplomacy.

“They underscored the importance of continued diplomacy and shared their commitment to promoting constructive engagement, peace, and stability in the region,” the FO said.

The development comes as Houthis claimed a missile attack on Saudi Arabia on Saturday as US President Donald Trump mulled fresh strikes on Iran in the deepening Middle East war.

The US military broke its daily announcement of fresh strikes on Iran on Saturday, following 13 nights in a row hitting military targets there.

Trump said he had not yet decided whether to launch major strikes on Iran, hours before the conflict widened across the region with Yemen’s Houthis claiming a missile attack on the southern Saudi city of Jizan.

SANAA: The Houthi rebels claimed a missile attack on Saudi Arabia on Saturday as US President Donald Trump mulled fresh strikes on Iran in the deepening Middle East war.

The US military broke its daily announcement of fresh strikes on the Islamic republic on Saturday, following 13 nights in a row hitting military targets there.

Trump said he had not yet decided whether to launch major strikes on Iran, hours before the conflict widened across the region with Yemen’s Houthi rebels claiming a missile attack on the southern Saudi city of Jizan.

The Houthis had accused US ally Riyadh of a “dangerous escalation” after it struck military targets belonging to the group on Friday, following the rebels announcing a maritime blockade of the top oil producer and hitting its ships in the Red Sea.

The flare-up marks a new front in a war that has engulfed the region following US-Israeli strikes on Tehran in February, and comes on top of Iran’s parallel blockade of the Strait of Hormuz, Riyadh’s only other maritime route.

Houthis say they don’t seek to close key Bab al-Mandeb Strait

Riyadh did not immediately comment on the Houthis’ Ansarollah media post on Telegram on Saturday that a “Yemeni missile strike” had sparked fires in Jizan.

But Riyadh’s civil defence agency issued brief warnings to residents in the city, as well as Yanbu, early on Saturday.

The warning came after the Saudi-led coalition said Friday it had hit Houthi sites and destroyed targets threatening commercial vessels in response to attacks on Red Sea shipping.

A Yemeni security source told AFP a naval base in the port city of Hodeida and a military camp on Kamaran island were among the Saudi targets.

The Houthis claimed attacks on two Saudi ships earlier this week, with Saudi Arabia confirming one of the attacks in the Red Sea.

‘Tipping point’

The escalation came after Trump said he would hold off on a major operation as Tehran was now getting “serious” in talks with Washington.

Yemen Houthis claim strikes on Saudi oil tankers in Red Sea

“No I haven’t,” Trump told journalists in the Oval Office when asked if he had made a decision on hitting Iran hard, for now dialing back reports that he was increasingly frustrated with the war and mulling a large-scale military operation.

“Look, we’re talking to them right now. I think they’re getting more and more serious as the days go by, for maybe the obvious reason.”

Trump said Iran had a choice between making a deal or facing a “much higher level” of strikes, after nearly two weeks of US attacks that have left a ceasefire in tatters.

The war that Trump once predicted would last four or five weeks is now nearing its fifth month, and is weighing on the Republican’s approval ratings ahead of crucial US midterm elections in November.

Trump added that he did not know what the “tipping point” would be for a decision, but reiterated that his red line would be if Iran was close to developing a nuclear weapon.

The United States says it is carrying out the strikes to stop Iran closing the crucial Strait of Hormuz.

Trump vows to punish Iran for Houthi attacks

Iran has responded with strikes on US bases that have killed four service members.

The Iranian military said Friday it had carried out attacks targeting US military assets in Bahrain, Jordan and Kuwait.

Iran’s Revolutionary Guards, meanwhile, said they had targeted an Amazon data center in Bahrain, according to state media, though neither the US tech giant nor Bahrain has commented on the claim.

There was also no confirmation from the United States of any targeting of its facilities or personnel.

In Bahrain, sirens sounded again early Saturday, the interior ministry said, urging residents to take shelter.

‘I trust them’

Trump also insisted Russia and China were not arming Iran, despite reports both were feeding Tehran intelligence to target US forces.

“President Xi (Jinping) said he will not partake, and President (Vladimir) Putin said the same thing… I trust them,” Trump told reporters.

“I don’t think they’d want to have me disappointed.”

Trump warns China, Russia against involvement in Iran war

On the diplomatic front, Chinese Foreign Minister Wang Yi met his Iranian counterpart Abbas Araghchi in Kyrgyzstan.

Wang called for a resumption of negotiations and the implementation of a memorandum of understanding aimed at easing tensions in the Middle East and the Gulf region, Chinese state news agency Xinhua reported.

That referred to the preliminary deal aimed at ending the war which has collapsed as the foes fight to break a deadlock over the Strait of Hormuz.

SANAA/DUBAI: Saudi strikes attacked Yemen’s Red Sea governorate of Hodeidah on Friday, Houthi-run Al Masirah TV reported, after eyewitnesses earlier said several strikes had targeted Hodeidah’s port.

Yemen’s Houthi movement said on Monday it would impose a naval blockade on Saudi Arabia in the Red Sea, opening a potential new front against the United States in its war with Iran. The Saudi-led coalition said it would respond “firmly”.

Al Masirah said Saudi strikes hit facilities belonging to the state telecommunications corporation in Hodeidah city. The broadcaster also said Saudi forces targeted Kamaran island, off Yemen’s western coast. Reuters could not immediately verify the reports.

READ MORE: Houthis say they don’t seek to close key Bab al-Mandeb Strait

Saudi Arabia has sought to avoid a return to full-scale conflict in Yemen since a 2022 truce with the Houthis halted most major fighting in a war that killed hundreds of thousands of people.

Meanwhile, US missiles struck targets across Iran on Friday after President Donald Trump vowed “major military punishment” for Tehran and Houthis in Yemen for extending the Middle East war to a second major shipping chokepoint, the mouth of the Red Sea. Two weeks after the collapse of an interim truce meant to end the war, the Iranian armed forces responded by firing at US bases in neighbouring Arab countries and warning people there that they may strike non-military buildings used by US personnel.

The Houthis, who control northern and western Yemen, have announced a naval blockade on Saudi Arabia, which has diverted millions of barrels of oil each day by pipeline to the Red Sea to skirt Iran’s near-total blockade of the Strait of Hormuz.

The entrance to the Gulf has so far been the focus of a war that has killed thousands in almost five months, stoked global inflation and fanned fears of an economic downturn.

The Houthi fighters struck two Saudi tankers on Thursday in the Red Sea’s Bab el-Mandeb strait.

Tankers rerouting, shipping insurance goes up

Meanwhile, the Houthi attacks forced several other tankers to turn around and head north through the Suez Canal, potentially using a much longer route to reach Asia by sailing around Africa. Shipping insurance costs through the southern Red Sea doubled for some companies on Thursday, sources said.

Still, half of the 18 ships exiting Bab el-Mandeb on Thursday were carrying crude oil, including two Chinese supertankers. The number of tankers crossing through the Strait of Hormuz fell to just one on Thursday, the lowest since May 7. The Iranian and Omani foreign ministers discussed security developments and maritime navigation in the Strait of Hormuz that runs between the two countries in a phone call, a statement on Iranian Foreign Minister Abbas Araqchi’s Telegram channel said.

Iran threatens US forces

Trump said on social media that he would hold Iran accountable for any further attacks by Yemeni fighters, “and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves”.

He told Axios he was considering re-launching major combat against Iran. “They haven’t received enough pain yet,” the US news outlet quoted him as saying. In a statement on X, the Iranian health ministry said 59 people had been killed and 666 wounded since the resumption of clashes with US forces in late June. Iranian media cited the head of Iran’s top joint military command as saying Iran would kill a member of the US forces for every Iranian killed.

The war has led to the deaths of 18 US service members. The Pentagon said on Monday that 100 service members had been injured since July 7 and 96% have returned to duty.

US warns citizens in mideast to exercise caution

The Iranian army said it had attacked US military equipment depots at Al-Adiri, officially named Camp Buehring, in northern Kuwait, and the positions of US troops at Camp Arifjan and at Camp Doha, near Kuwait City. In the early evening, Kuwait said its air defences were intercepting “hostile” targets launched from Iran.

Iran’s Revolutionary Guards said they had significantly damaged a surveillance tower used by the US Fifth Fleet in Bahrain.

They also said they had attacked a US barracks and fighter jets in Jordan, and a US barracks and spy balloon as well as Patriot air defences in Erbil in Iraq’s Kurdish region, according to the semi-official Tasnim news agency.

Jordan’s army said it had downed seven Iranian missiles and six drones, state TV reported, and that the attack had caused no material damage or casualties.

The US embassy in Baghdad said US citizens in the Middle East should exercise caution and remain on heightened alert.

US missiles hit a Guards HQ, media says

US missiles struck a Revolutionary Guards Navy headquarters in the Ziba Kenar area of the Caspian Sea province of Gilan, according to a security official in Gilan quoted by Iranian media. Provincial authorities said US projectiles had also struck the port city of Bandar Anzali, according to the ILNA news agency.

Four people were killed and five injured in a US attack on the Iranian city of Ahvaz, the state broadcaster IRIB said.

In a statement carried by Iran’s Fars news agency, the Revolutionary Guards warned the populations of Gulf countries of potential strikes against US military personnel who may be using “buildings in cities as locations to direct their crimes”.

WASHINGTON: U.S. President Donald Trump said on Friday that he does not believe China or Russia are “participating” in the ongoing Iran conflict, but warned that if they did get involved “it would be very bad for them.”

“President Xi, at our recent meeting in Beijing, China, told me that he would not, under any circumstances, give or sell Weapons to the Islamic Republic of Iran — And that statement included Chinese Companies,” he wrote on Truth Social.

Trump said Putin had also told him that he would not sell weapons to Iran and that he believed Russia and China were not participating in the Iran conflict.

US House approves USD95bn budget plan with Iran war funding

“If they did, it would be very bad for them — Certainly not in their best interests,” Trump posted.

The United States and Iran have been at war since the U.S. and Israel launched strikes in February, killing senior Iranian officials, including the country’s supreme leader.

Four people familiar with U.S. intelligence said Iranian strikes on CIA targets in the Gulf earlier in the war had prompted U.S. intelligence to investigate whether Russia was assisting Iran with targeting information or drone technology. The Kremlin on Thursday declined to comment on the report.

The United States has sanctioned individuals and companies in Russia and China for helping Iran buy weapons.

SANAA: A Houthi spokesman said Friday that the rebels were not blocking traffic through the strategic Bab al-Mandeb Strait, after they declared a maritime embargo this week on their foe Saudi Arabia.

The Houthis attacked a Saudi ship in the nearby Red Sea after announcing the blockade, which threatens the top oil exporter’s ability to get its supplies to the world following Iran’s parallel blockade of the Strait of Hormuz, the kingdom’s only other maritime route.

Global energy markets had already been rattled by renewed fighting between the US and Iran, and Brent crude briefly surged over $100 on Thursday after the Houthi attack.

“There is no closure of Bab al-Mandab as some are suggesting,” said Mohammed Abdusalam, who is also a top Houthi negotiator, adding that the rebel position was “limited to a maritime blockade that only affects the Saudi side”.

Trump vows to punish Iran for Houthi attacks

The rebels warned in a radio message to ships on Monday that they would target ships “belonging to (the) Saudi enemy” that do not comply with their blockade.

According to data analysed by AFP on Wednesday, nine ships made a U-turn after the rebels announced their naval blockade, though some have resumed course.

Despite the Houthi threats and course changes, traffic continues in the Bab el-Mandeb Strait, which has been key to Saudi exports after passage through Hormuz became fraught.

Houthis say they attacked Saudi tankers in the Red Sea, threatening new chokepoint in Iran war

After the Middle East war broke out, Saudi seaborne crude exports via the Bab el-Mandeb strait surged eightfold between March and mid-July 2026 compared with the same period in 2025, according to data from maritime tracker Kpler.

SINGAPORE/LONDON: The price of physical crude oil cargoes in the Middle East, Europe and Africa jumped this week to two-month highs with some nearing $110 a barrel, as  supply disruptions linked to the Iran and Ukraine wars left buyers scrambling to secure prompt supply from other sources.

Global oil price benchmark dated Brent, used to price over 60% of the world’s physical crude cargoes, hit $105.70 per barrel on Thursday according to LSEG data, its highest since late May and breaching $100 for the first time since early June. That pushed the price of North Sea Forties crude, priced against Brent, to $108.77 on Friday.

Yemen’s Houthis attacked tankers in the Red Sea this week, triggering a rerouting of some Saudi shipments via aroute that circles Africa. This followed the collapse of a preliminary U.S.-Iran peace deal and increased disruption to exports through the Strait of Hormuz.

“Supply considerations are once again at the forefront of thinking,” said Tamas Varga, an oil broker at PVM.

Oil retreats from above $100, still set for weekly rise on Middle East escalation

Adding to the Middle East disruption, Kazakhstan said on Thursday it had reduced oil production after suspected Ukrainian drone attacks forced its main export terminal for CPC Blend crude on the Black Sea to close. Kazakh crude production has halved to around 406,000 barrels per day, one source said.

Middle Eastern grades rebound

Spot premiums for Middle East benchmark Dubai to swaps doubled on Thursday to $12.74 a barrel, while Oman’s premium climbed to $12.62, Reuters data showed. Both premiums are the highest since the end of May.

Middle Eastern grades had traded at wide discounts earlier this month during the short-lived truce between the United States and Iran which was agreed in mid-June.

The premium for Abu Dhabi’s flagship Murban crude surged to $19.04, the highest since April 7, on tight supply for light-sour crude as ship attacks in the Black Sea compounded the supply problems in the Middle East.

The front-month Dubai contract itself touched $99.66 on Thursday, also a high since late May.

Discounts on Russian oil evaporate on fresh Middle East crisis

Saudi crude diversion

The rising security threat has already forced several oil tankers to change course in the Red Sea to head north towards the Suez Canal even as two Chinese supertankers exited on Thursday from Bab el-Mandeb into the Gulf of Aden.

Saudi Aramco has offered additional crude cargoes for loading from Egypt’s Mediterranean port of Sidi Kerir, according to five trading sources.

Several Asian refiners are looking for cargoes and vessels loading from the Egyptian port, two traders said, which would mean almost a one-month diversion around Africa compared to the usual route through Bab el-Mandeb.

South Korea’s largest refiner SK Energy has chartered a very large crude carrier (VLCC) to load 2 million barrels of crude from Sidi Kerir to Ulsan, South Korea, on August 18-20 at a lump-sum freight rate of $18.5 million, shipping sources said. The Korean refiner did not immediately respond to a request for comment.

“Buyers are now scrambling to secure supplies, with Japanese and South Korean refiners rushing into the market to buy cargoes,” said one of the traders with a refiner, adding that the North Asia refiners are seeking Atlantic Basin crude.

US vows to punish Iran after Houthis strike tankers

Atlantic basin crude grades also rally

North Sea crudes jumped on Thursday, with Ekofisk’s premium to dated Brent hitting a one-month high of $4.30 and that of Forties bid up to dated plus $3.60, its firmest premium since May.

The drop in Kazakh exports could boost demand from Mediterranean refiners for North Sea and West African grades, Kpler analysts wrote this week.

Short-term Brent swaps called contracts for differences, which help establish the dated Brent price, also surged on Thursday, with the contract for next week doubling to a $11.10 premium.

Sellers of West African crude have started to hike offers, traders told Reuters this week, but the market remains largely in wait-and-see mode according to one trader on Thursday.

TEHRAN: The United States launched a fresh wave of strikes on Iranian military targets early Friday, marking the thirteenth night of active combat in the region as President Donald Trump vowed to use frozen Iranian assets to pay for any damage to shipping.

The latest volley comes the night after Iran-backed Houthis in Yemen opened a new front in the war with attacks on oil tankers in Red Sea shipping lanes – though US Central Command (CENTCOM) did not specifically mention the rebel blockade in announcing the latest offensive.

Iranian state media reported that US missiles hit the southwestern city of Ahvaz, and explosions were heard in nearby Omidiyeh, as well as the port city of Bandar Abbas and the island of Qeshm on the Strait of Hormuz.

READ MORE: US launches new wave of strikes on Iran ‘military targets’

CENTCOM said the attacks “aimed to hold Iran accountable and diminish threats from the Islamic Revolutionary Guard Corps to commercial shipping”.

Oil prices soared along with the increased threat to the energy trade.

Trump said the United States would hold Iran responsible for the Houthis’ actions and warned both would soon receive a “major military punishment”.

The international oil benchmark Brent crude surged past $100 a barrel for the first time since May, up seven percent, while world leaders expressed alarm over the Houthi Red Sea attacks.

“The situation is getting out of control. It is teetering on the edge of the unimaginable,” United Nations Secretary-General Antonio Guterres warned.

“One crisis feeds another. One escalation triggers the next,” he told a meeting of the UN Security Council.

European Central Bank President Christine Lagarde warned “the energy shock could intensify further” and push up inflation, feeding speculation about a September eurozone interest rate hike.

German Defence Minister Boris Pistorius, meanwhile, warned of “dire consequences” for oil-importing economies and said “nothing – absolutely nothing – suggests that a ceasefire, let alone peace, could be reached”.

The war resumed this month after a ceasefire that had lasted just a few weeks, throwing the region back into chaos as Iran and the United States battled for control of the vital Strait of Hormuz.

“The armed forces’ retaliatory attacks will continue as long as the US attacks on the country’s infrastructure and coastal areas continue,” Iran’s army spokesperson Mohammad Akraminia said, according to state television.

Yemen’s Houthis joined the conflict this week, declaring a blockade of Saudi ports and claiming attacks on tankers.

Jordan and Kuwait both reported intercepting strikes as Iran’s military and Revolutionary Guards claimed to be targeting US assets in both countries.

Late Thursday, Trump said on social media that the US would begin using frozen Iranian assets “that the United States has in its possession, and controls” to pay for “any and all damages done to Ships, Cargo or anything related” in the region.

Houthis step in

While Trump has returned to war and his fierce rhetoric, the conflict is proving increasingly unpopular at home.

With midterm elections looming in November, the US House of Representatives passed a symbolic vote, backed by opposition Democrats and a handful of Republicans, calling for the president to halt the war.

Kuwait, meanwhile, reported a drone attack against one of its border posts with Iraq, saying it caused no casualties.

The emirate also later said its air defences were “intercepting hostile missile and drone attacks following the wrongful Iranian aggression”.

The Houthis said they had carried out missile and drone strikes on two Saudi tankers in the Red Sea, the Encelia and the Layla, after declaring their blockade of Saudi ports.

British naval security monitor UKMTO said the master of a tanker reported being hit by an unknown projectile about 70 nautical miles southwest of Al Shuqaiq, causing a fire.

Saudi Arabia confirmed the Encelia had been struck, without commenting on the other tanker.

The new threat in the Red Sea could compound the shock of the Hormuz closure, endangering Riyadh’s ability to bypass the strait for some oil exports.

Iran’s Revolutionary Guards said they stopped three oil tankers from transiting Hormuz, as they vie with the US Navy for control over a route through which around one fifth of the world’s oil once passed.

On the sidelines of a Southeast Asian summit in Manila, US Secretary of State Marco Rubio said the Houthis had been “suckered” into attacking Red Sea shipping by Iran.

“The Houthis largely were smart and stayed out of all this throughout the conflict, but they now apparently have gotten themselves suckered into this, going after Saudi Arabia and their ships,” Rubio said.

Oman, a key mediator in the longstanding war between the Houthis and Saudi Arabia, said it was working to resume talks between the two sides, as it voiced “great concern” at the situation in the Red Sea.

RIYADH: US President Donald Trump said on Thursday that a deal with Saudi Arabia to establish a civilian nuclear programme would be contingent on the kingdom’s recognition of Israel, a move long sought by Washington but resisted by Riyadh.

The announcement came as the United States fights a war with Iran that began in large part over concerns about Tehran’s nuclear programme.

Israel’s Prime Minister Benjamin Netanyahu said recognition by Saudi Arabia, a regional power and home to Islam’s holiest sites, would mark a “historic leap” forward for peace in the Middle East.

Saudi Arabia has resisted a concerted push by the US to join the so-called Abraham Accords with Israel, insisting on a pathway to a Palestinian state before it offers recognition.

The deal announced Wednesday to establish a civilian nuclear programme in the Gulf kingdom “will be approved, but is totally subject to Saudi Arabia joining the very respected and successful Abraham Accords”, Trump said.

Should it go through, the deal would generate billions of dollars for American companies and would be a major win for Saudi Arabia on both the economic and diplomatic fronts.

NEW YORK: Oil prices settled above USD 100 on Thursday for the first time since May after Yemen’s Houthis said they attacked two Saudi oil tankers in the Red Sea, causing further global supply disruptions following a near-halt in trade through the Strait of Hormuz.

Brent futures finished up USD 6.62, or 7 percent, at USD 100.69 a barrel, marking their highest close since May 22. The global crude oil benchmark’s prices are now nearly 40 percent higher than when the Iran war began in February, with almost all of its gains coming this month.

US West Texas Intermediate crude closed up USD 5.36, or 6.2 percent , to settle at USD 92.19 a barrel, the highest close since June 4.

READ MORE: Oil settles up over 3pc to six-week high

“With the possibility of a ground war seemingly increasing by the day, and tanker traffic restricted through two of the most active chokepoints in the world, crude oil is suddenly positioning itself to within striking distance of the four-year high of USD 126.41, with the global economy drawing down so fast it will eventually be running on fumes,” said Bob Yawger, director of energy futures at Mizuho.

Saudi tankers attacked

Yemen’s Houthis have opened a new front in the Iran war by targeting vessels carrying Saudi oil in the Bab el-Mandeb Strait after stating they would impose a naval blockade on shipments from Saudi Arabia.

The Houthi militia attacked two Saudi Arabian oil tankers in a military operation, the group said on Thursday, with the Saudi Arabian state news agency, SPA, later confirming that one of the two vessels was ablaze after an assault while sailing in the Red Sea. SPA did not say who attacked the vessel.

“The escalation compounds the near-halt in Hormuz traffic and the sharp reduction in Iranian exports, intensifying concerns over near-term global availability,” Gelber and Associates wrote in a note.

Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of roughly a quarter of the world’s oil supply. Still, following the attacks, two Chinese supertankers carrying a combined 4 million barrels of Saudi Arabian oil managed to exit the Red Sea via the Bab el-Mandeb Strait on Thursday, shipping data showed.

Goldman Sachs said Brent might exceed USD 120 a barrel in the fourth quarter and average USD 100 next year if the strait remains disrupted through 2027, with further upside if the Bab el-Mandeb Strait and Suez Canal also suffer persistent disruption.

Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to follow a mined route in the southern area of the strait near the coast of Oman and that two others had turned back.

The Guards said the strait was under their control and “completely closed” while US actions continued in the region, warning that no tanker would be allowed to enter or leave without coordination with Iran. US President Donald Trump promised “major military punishment” for Iran and its Houthi allies.

Hormuz traffic stalls

Iranian strikes on vessels crossing the strait have resulted in a drop in non-Iranian oil tankers traversing the waterway, and the reintroduction of a US naval blockade targeting Iranian ports likely has resulted in Iranian oil loadings falling to zero from 1.5 million to 2 million barrels per day at the start of the month, Giovanni Staunovo, a UBS analyst, said.

As a result of fewer shipments exiting the strait, loading activity within the Gulf has fallen to 2.5 million bpd over the past seven days, compared with 6 million bpd over the past 30 days, Staunovo added. To shore up supplies, seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — are likely when they meet on August 2 to increase their output target by about 188,000 barrels per day for September, three sources told Reuters, even as the war hinders some of the group’s members from pumping more.

ISLAMABAD: Foreign Office (FO) on Thursday expressed ‘disappointment’ with the European Union’s recent assessment report, which identified several issues in Pakistan’s compliance with its obligations under the Generalised Scheme of Preferences Plus (GSP+), saying the report failed to present a balanced picture of the country’s performance.

The FO, however, appreciated last week’s assessment of Pakistan’s legislative progress during the reporting period and the country’s continued compliance with the 27 international conventions.

Responding to a query during a weekly media briefing, FO Spokesperson Tahir Andrabi said, “Nevertheless, I would be remiss if I did not express disappointment with the assessment, as the report’s overall narrative does not present a sufficiently balanced picture of Pakistan’s performance.”

READ ALSO: EU warns Pakistan GSP+ hinges on human rights progress

It understates the breadth of reforms undertaken since Pakistan joined GSP Plus in 2014 and places disproportionate emphasis on the lower-than-desirable level of progress in certain areas, the FO spokesperson said, adding that GSP Plus remains central to Pakistan’s economic relationship with the European Union, supporting exports, employment, women’s economic participation, poverty reduction, and broader economic development. It is a mutually beneficial arrangement in that respect.

Beyond GSP, he emphasised Pakistan’s EU cooperation extends to development, migration, counter-terrorism, regional stability, climate resilience, connectivity, and many other areas.

Andrabi added, “We will remain constructively engaged with the European Commission and other EU institutions and remain committed to the effective implementation of the international conventions underpinning the GSP framework.”

The spokesperson completely rejected the allegations made by Amnesty International, stating that it is unfortunate that such serious allegations have been levelled without any credible evidence.

“Pakistan calls upon Amnesty International and the international community at large to direct rigorous scrutiny towards the Taliban regime’s continued patronage of terrorist groups, the root cause that this Amnesty International report has conspicuously failed to address,” he added.

Pakistan reserves the right to take all necessary measures to safeguard its sovereignty, territorial integrity, and the safety and security of its people, he remarked.

He noted that the Taliban regime continues to maintain a permissive environment for a range of terrorist organizations, including Tehreek-e-Taliban Pakistan (TTP), the Balochistan Liberation Army (BLA), and their other affiliates.

The freedom to undertake terrorist activities allowed to these listed organizations, their access to bases and sanctuaries on Afghan soil, as well as their ability to recruit, finance, and execute cross-border attacks, constitute a serious threat to regional peace and security.

“Thousands of innocent Pakistani citizens have been martyred and injured because of terrorist attacks against Pakistan, which have been planned, financed, supported, and carried out from Afghan soil, all under the watch, patronage, and active facilitation by the Taliban regime, Andrabi highlighted.

He urged that any military strikes by Pakistan were undertaken in the exercise of its right to self-defence under the principles of necessity and as a measure of last resort. The FO spokesperson rejected any insinuation in this regard.

Commenting on a specific offer or proposal on a US-Iran 10-day or 15-day ceasefire, he said these are communications, which have a certain degree of confidentiality. So, I will neither confirm nor deny them, he said, adding that Pakistan has been advocating for peace and the necessity of giving peace a chance through diplomacy and dialogue.

As regards your question about the future prospects, we have not lost hope. We remain hopeful; however, the situation on the ground may be grim.

“We will remain alert in the Red Sea area,” the spokesperson said, adding “all our bilateral agreements with Saudi Arabia, or for that matter with any country, once they have been concluded through due process, including ratification, remain in operation.”

Copyright Business Recorder, 2026

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday strongly condemned attacks by Yemen’s Houthi militia targeting Saudi oil tankers in the Red Sea, describing the actions as a threat to international law, maritime security and regional stability.

During a telephone conversation with Saudi Crown Prince Mohammed bin Salman, Prime Minister Shehbaz expressed Pakistan’s firm support for Saudi Arabia and rejected what he called unacceptable actions that endanger freedom of navigation in one of the world’s most important maritime trade routes.

“Such actions are unacceptable, violate international law, threaten freedom of navigation, and undermine regional peace and security,” he said, according to a statement issued by the Prime Minister’s Office.

READ MORE: FO slams Houthi threats against KSA, shipping

Sharif reaffirmed Pakistan’s solidarity with the Saudi leadership and people, saying that the country stood alongside the Kingdom during the current situation.

“I, together with Field Marshal Syed Asim Munir and the entire Pakistani nation, stand firmly and resolutely with the Saudi leadership and the brotherly people of the Kingdom at this critical time,” he said.

The two leaders also agreed to maintain close coordination to support regional peace, security and stability, while ensuring the continued flow of lawful maritime commerce through the Red Sea, the Strait of Hormuz and the wider region.

Copyright Business Recorder, 2026

WASHINGTON: The US House of Representatives approved a USD 95 billion budget framework on Wednesday, with most of the funding earmarked for the Pentagon to fund the war against Iran.

The measure was narrowly approved in a 216-214 vote and now heads to the Senate, where its fate is uncertain.

The plan provides USD 73 billion for the armed forces and intelligence agencies, notably to fund operations linked to the war against Iran, as well as USD 12 billion in aid for farmers affected by President Donald Trump’s trade war.

An additional USD 10 billion would go toward election-related programs as part of Trump’s push to enact new nationwide voting restrictions while his broader “SAVE America Act” lacks enough support to proceed.

The budget package represents the party’s last major legislative push before November’s midterm elections, the outcome of which will determine whether the party retains its majority in Congress and thus continues to shape the remainder of Trump’s second term.

The resolution, which for now is only a budget framework, would allow House Republicans — if it is approved by the Senate — to draft detailed legislation later in the summer.

The aim would then be to try to pass it in the Senate by a simple majority using an expedited budget procedure, thereby bypassing the usual 60-vote threshold and Democratic opposition.

House Speaker Mike Johnson said the measure approved Wednesday “puts Congressional Republicans on a path to enacting two fundamentally simple and crucial goals: securing American elections and strengthening our homeland.”

Democratic Representative Rosa DeLauro, meanwhile, denounced a measure that would allow Trump to finance the continuation of his war against Iran.

“The American people do not want more open-ended, aimless, expensive, and deadly wars in the Middle East. They want the price of basic necessities like food, housing, healthcare, childcare, and gasoline to go down,” she said.

The cost of living in the United States is a central issue in the run up to the midterm elections, as inflation remains persistent.