Oil prices have surged above $87 per barrel as escalating tensions between Iran and the United States rattled global financial markets and increased concerns about inflation and economic growth.

Brent crude oil climbed by 3.68 percent, rising $3.10 to reach $87.33 per barrel, its highest level in months. US West Texas Intermediate (WTI) crude also jumped nearly 4 percent to $82.09 per barrel as investors reacted to growing fears of a wider conflict in the Middle East.

The latest surge followed reports of renewed US military action against Iran and Tehran’s retaliatory attacks on US-linked military facilities in the Gulf region and Syria. The developments have raised concerns about possible disruptions to energy supplies through the Strait of Hormuz, a vital route that handles around one-fifth of global oil trade.

The rally spread across the broader energy market. Gasoline, natural gas and LNG benchmark prices also moved higher as traders priced in increasing geopolitical risks.

Global stock markets, however, moved in the opposite direction. Major US indexes, including the S&P 500, Nasdaq Composite and Dow Jones Industrial Average, opened lower as investors shifted money away from riskier assets. European and Asian markets also recorded losses, with technology and semiconductor stocks among the hardest hit.

In Pakistan, analysts warned that persistently high oil prices could increase the country's import bill, widen the current account deficit and fuel inflation. Higher energy costs may also put additional pressure on the Pakistani rupee and public finances.

Market experts believe volatility is likely to continue until there is greater clarity on whether the Iran-US conflict remains contained or expands into a broader regional crisis.