Refining bottlenecks are emerging as the next big oil problem as Middle East skirmishes flare up

Global oil prices have surged to multi-week highs due to rising tensions in the Middle East. According to Dawn Business and Dawn, Brent crude reached $99.22 a barrel, its highest since July 24, while US West Texas Intermediate crude hit $94.60 a barrel, its highest since June 8.

The increase in oil prices is putting pressure on investor sentiment, with the Pakistan Stock Exchange's benchmark KSE-100 index declining by nearly 1,000 points on Tuesday, as reported by Dawn Business and Dawn. Awais Ashraf, director of research at AKD Securities, noted that the "prolongation of tensions" between the US and Iran, along with the increase in oil prices, is adding to the pressure.

American drivers have recently faced the highest Labor Day gasoline prices ever, and dwindling global refinery capacity is threatening to push prices higher, as reported by MarketWatch. Qatar has vowed to prioritize China's energy supply and safeguard shipments through the Strait of Hormuz, as both countries coordinate efforts to de-escalate Middle East tensions, according to Reuters Business via SCMP.

Brief written by urgent.news from MarketWatch, Reuters Business via SCMP, Dawn Business, Dawn — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.