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Oil rises as fresh US, Iran confrontations ignite Middle East

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Oil prices rose Monday after days of tit-for-tat strikes by the U.S. and Iran that highlighted the fragility of their interim peace deal and again slowed energy shipping through the Strait of Hormuz.

Brent crude futures were up 58 cents, or 0.8%, at $72.57 a barrel by 0207 GMT. U.S. West Texas Intermediate crude was at $70.11 a barrel, up 88 cents, or 1.3%.There is still a lot of risk in the oil industry. Still, participants seem to be preoccupied with the implications for the global balance of a continued recovery in oil flows,” ING analysts said in a note on Monday.This confidence is strange and plainly provides considerable upside risk if the supply recovery proves slow.”

Brent crude closed down 10.6% last week, its third weekly loss, after crude shipments through the strait increased last week to the greatest level since the U.S.-Israeli war on ​Iran started in late February.

But commerce has slowed anew since repeated attacks on ships in the strait from Thursday, including a Qatar-linked oil tanker, which prompted strikes from the U.S. and Iran in the sharpest escalation since they signed an interim peace pact.

Iran and the United States have agreed to end recent confrontations in the Gulf and resume discussions on their dispute over the Strait of Hormuz, a U.S. official said on Sunday, capping increases in oil prices.”Market will likely revisit its assumption of a quick recovery of oil supply from the Persian Gulf,” ANZ analysts said in a note.

Saudi oil company Aramco (2222.SE), opens new tab began crude oil loadings on Friday at its Ras Tanura terminal, west of the Strait of Hormuz, after they were stalled for nearly four months, as oil producers stepped up output and exports ahead of a temporary accord.

The loadings went on even after a helicopter owned by the firm crashed Sunday at Ras Tanura, killing 14 nationalities. The cause of the ⁠crash ​was unknown.Physical flows are constrained by tanker backlogs, infrastructure and production shut-ins. “It could take the rest of the year for supplies to get back to pre-conflict levels,” ANZ analysts warned.

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Saudi delegation eyes Karachi port investments as Pakistan expands maritime trade

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A Saudi business delegation led by Prince Mansoor bin Mohammed Al Saud has expressed interest in investing in Karachi’s port infrastructure, logistics links and green initiatives, Pakistani authorities said Monday, as Islamabad seeks to expand maritime cooperation with its longtime Gulf ally.

The visit comes amid efforts by Pakistan and Saudi Arabia to expand economic partnership from traditional trade, remittances and financial support to investment-based cooperation in infrastructure, energy and other areas. Pakistan is also seeking to modernize its ports, improve connections with land transport networks and expand transshipment operations to strengthen its position in regional trade.

Prince Mansoor, Chairman of the Saudi Arabian Chapter of the Saudi-Pakistan Joint Business Council, led a high-level corporate delegation to Karachi Port Trust (KPT), Port Qasim and South Asia Pakistan Terminals Limited, where officials were briefed on investment opportunities and ongoing modernization projects.

The briefings focused on the proposed 140-acre Maritime Business District in Karachi and the development of Manora Shipyard.

“Prince Mansour expressed keen interest in KPT’s Maritime Business District, Green port initiatives, terminal infrastructure expansion and connectivity initiatives, recognizing their scope for mutually beneficial Saudi investment and joint ventures,” the KPT said in a statement. The Saudi-Pakistan Joint Business Council serves as a platform for companies and investors from both countries to identify commercial opportunities, develop partnerships and form joint ventures. Prince Mansour has led several delegations to Pakistan as the two governments seek to translate their long-standing political and defense ties into greater private sector investment. In June, KPT signed a memorandum of understanding with its Saudi Arabian and Pakistani partners to explore the development of a maritime business zone on MT Khan Road in Karachi.

The proposed development involves the Saudi Arabian Business Council – Najd Gateway Holding Company, Arif Habib Dolmen REIT Management Limited and a consortium of Pakistani companies and is intended to accommodate commercial and maritime businesses.

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Bullish momentum continues as PSX gains over 300 points

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The Pakistan Stock Exchange (PSX) opened in positive territory on Wednesday with the benchmark KSE-100 gaining 309 points in early trade.

The index rose to 179,600 points, continuing the upward momentum in the market at the start of the third trading day of the business week.

The latest gains follow a strong performance in the previous session, when the stock market maintained its upward trend throughout trading.

At the close of Tuesday’s session, the KSE-100 Index had surged by 5,448 points to settle at 179,335 points.

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Pakistan, Saudi Arabia investors launch fund to boost trade, investment

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A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the countries’ broader push to deepen two-way trade and private sector investment.

The Saudi-Pakistan Joint Business Council, formed by the governments of both countries, said the fund’s initial size is “multi hundred million”, which is expected to expand based on opportunities across sectors.

Three-fourths of the fund will be invested in Pakistan, while the rest will be invested in Saudi Arabian projects, the council said in a statement.

The launch of ⁠the ⁠fund comes at a time when Islamabad and Riyadh are deepening longstanding ties, especially in defense, amid few signs of a breakthrough in the months-long US-Iran conflict.

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