Crude, which tipped a 14-month high earlier this month, has suffered heavy selling in the past couple of weeks on fears about the impact on demand caused by new European lockdowns.
The indexes inched high with the benchmark KSE 100 closing above the 44,000 mark. As per analysts, investors’ confidence improved following ease in political tensions.
Observers said the ECB move signalled to investors that bank officials around the world were ready to step in to keep their monetary policies ultra-low for as long as needed to help the economy get back on track.
Eyes are now on the European Central Bank's policy meeting later in the day, which will be followed for its outlook on interest rates and its vast bond-buying programme as the world economy recovers from last year's collapse.
"Oil prices could rip higher now that a tight market is likely up through the summer," said OANDA's Edward Moya. "WTI at $75 no longer seems outlandish and Brent could easily top $80 by the summer."
"Since financial conditions are tightening and with wage pressures remaining nonexistent, that should keep inflation fears from getting out of control.
The move has put a brake on a massive spending spree in Hong Kong by mainland traders looking to take advantage of relatively cheap shares in the city.
The dollar advanced to a near one-week high against a basket of currencies, as volatility in stock markets around the globe sapped investors' appetite for riskier currencies.
Tech giants Alibaba and Tencent surged in Hong Kong after a report that the US will not bar Americans from investing in them, as it has done for other firms over national security concerns.