Global oil prices surge amid Middle East tensions; gold plunges

Crude oil prices continued their upward trend in international markets on Monday, driven by rising geopolitical tensions in the Middle East.

American crude surpassed the $100-per-barrel mark, while Brent crude, the benchmark for British oil, climbed above $113 per barrel. Analysts attributed the surge to supply concerns as the regional situation remains volatile.

In response to rising global oil prices, here at home, Pakistan’s Prime Minister Shehbaz Sharif announced an increase in the levy on high-octane fuel used in luxury vehicles. The tax on premium fuel has risen by Rs 200, bringing the total levy to Rs 300 per liter. Officials clarified that the prices for fuel used in ordinary vehicles remain unchanged.

The move reflects the government’s approach to cushion the broader public from rising energy costs while adjusting taxes on luxury consumption amid surging international oil prices.

GOLD PRICES PLUNGE TO MULTI-MONTH LOWS

Spot gold prices fell sharply on Monday, dropping 6 per cent to $4,214.89 per ounce, marking the lowest level since December 11. The decline follows heightened inflation worries and speculation over rising global interest rates amid escalating Middle East conflicts.

Last week, gold suffered its worst weekly performance since February 1983, losing more than 10 per cent, and has now fallen over 20 per cent from its record high of $5,594.82 per ounce set on January 29. Investors are increasingly turning to other assets as geopolitical and economic uncertainties reshape global markets.