Pakistan Enacts Emergency Measures
On March 10, 2026, Pakistan announced sweeping emergency austerity and fuel conservation measures in response to significant disruptions in its oil and gas supply caused by the ongoing Iran war. The conflict has severely impacted the Strait of Hormuz, a vital waterway for global oil trade.
Pakistan relies heavily on imports for over 80 percent of its oil needs. Between July 2025 and February 2026, the country spent approximately $10.71 billion on oil imports, highlighting its vulnerability to external supply shocks.
Impact on Fuel Prices
The energy crisis has triggered the largest fuel price increase in Pakistan’s history. Currently, petrol costs $1.15 per litre, while diesel is priced at $1.20 per litre, marking a 20 percent increase since the previous week. This surge in prices comes at a particularly challenging time, as it coincides with the final days of Ramadan, straining household budgets across the nation.
Qatar, Pakistan’s primary LNG supplier, has also been affected, as its cargoes must navigate the increasingly perilous Strait of Hormuz. The ongoing conflict has raised concerns about the stability of energy supplies in the region.
US Military Actions and Regional Tensions
The United States has intensified its military operations against Iran, aiming to dismantle its missile and defense capabilities. US Defense Secretary Pete Hegseth stated that today would be one of the most intense days of strikes inside Iran, indicating a significant escalation in the conflict.
In a recent update, the Defense Secretary noted that the number of missiles fired by Iran in the past 24 hours was the lowest since the war began, suggesting a potential shift in the dynamics of the conflict.
Prime Minister Shehbaz Sharif emphasized the dire situation, stating, “The entire region is currently in a state of war.” Economic analysts, including Amer Zafar Durrani, have pointed out that while rising oil prices are a concern, the more pressing issue may be currency depreciation, which could have broader macroeconomic implications.
As the situation evolves, the ramifications of the Iran war on oil supply and prices continue to unfold, with significant implications for Pakistan and the wider region. Details remain unconfirmed regarding the long-term impacts of these developments on energy security and economic stability.
