Pakistan’s Emergency Measures
On March 10, 2026, Pakistan announced sweeping emergency austerity and fuel conservation measures in response to severe disruptions in oil and gas supply caused by the ongoing Iran war. The conflict has significantly impacted the Strait of Hormuz, a vital waterway for traded oil, exacerbating the situation for Pakistan, which relies on imports for more than 80 percent of its oil needs.
Between July 2025 and February 2026, Pakistan’s oil imports totaled $10.71 billion, highlighting the country’s heavy dependence on foreign oil. The recent energy crisis has triggered the largest fuel price increase in Pakistan’s history, with petrol now costing $1.15 per litre and diesel $1.20 per litre, marking a 20 percent increase since the previous week.
Effects on Households
The fuel crisis has emerged during the final days of Ramadan, putting additional strain on household budgets. Prime Minister Shehbaz Sharif remarked, “The entire region is currently in a state of war,” underscoring the broader implications of the conflict on everyday life in Pakistan.
Transport and Consumption
As transport dominates petroleum consumption, the rising fuel prices are expected to have a cascading effect on various sectors of the economy. Amer Zafar Durrani, an economic analyst, noted, “The biggest risk does not come from oil prices alone. The real macroeconomic trigger is currency depreciation,” indicating that the crisis may have long-term economic ramifications.
US Military Actions
In the context of the Iran war, the United States has been conducting intense strikes on Iran, aiming to dismantle its missile and defense industrial base. US Defense Secretary Pete Hegseth stated, “Today will be yet again our most intense day of strikes inside Iran,” reflecting the escalating military actions in the region.
As the situation develops, the implications for Pakistan’s economy and energy supply remain uncertain. Qatar, which is Pakistan’s primary LNG supplier, has its cargoes passing through the Strait of Hormuz, further complicating the energy landscape.
Details remain unconfirmed regarding the long-term effects of the Iran war on global oil supply and prices, but the current crisis in Pakistan serves as a stark reminder of the interconnectedness of regional conflicts and energy security.
