EL7.AI
CommoditiesMediumUpdated×3•Originally published 27 February 2026•Updated 27 February 2026•
1 min read

Oil Prices Hit 7-Month Highs as Pakistan-Afghanistan War Ignites Supply Fears

Key Facts

1The EIA reported a 16-million-barrel build in U.S. crude inventories, the largest weekly increase in three years.
2The inventory build far exceeded expectations, which would typically drive prices lower in a fundamentals-driven market.
3Oil prices remain elevated as geopolitical risks involving Iran offset the bearish impact of the supply surplus.

Crude oil prices surged to a seven-month peak following the outbreak of an armed conflict between Pakistan and Afghanistan, sparking widespread alarm in global energy markets. This sudden military escalation significantly compounds existing supply anxieties stemming from the stalled Iran nuclear negotiations, driving up geopolitical risk premiums. While ADNOC had previously moved to increase Murban crude exports to stabilize prices, the scale of the new regional conflict has largely overshadowed these production efforts. Market participants are currently looking past the massive U.S. inventory builds reported by the EIA, focusing instead on the potential for broader regional instability. This shift indicates a period of heightened volatility where security concerns are taking precedence over traditional supply-demand fundamentals. Investors remain on high alert for any further escalation that could threaten critical energy transit routes in the region.