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 energy crisis in the region.

Pakistan relies on imports for more than 80 percent of its oil needs, and the recent disruptions have led to a historic surge in fuel prices. Between July 2025 and February 2026, Pakistan’s oil imports totaled $10.71 billion, indicating the heavy financial burden the crisis has imposed on the country.

Impact on Fuel Prices

The 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. 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, which is Pakistan’s primary LNG supplier, has also been affected, as its cargoes must pass through the increasingly volatile Strait of Hormuz. The ongoing conflict has raised concerns about the stability of energy supplies in the region.

Regional and Global Context

The ongoing conflict in the Middle East has significant implications for global oil supply and prices. US Defense Secretary Pete Hegseth stated that today would be one of the most intense days of strikes inside Iran, aiming to dismantle its missile and defense capabilities. Reports indicate that the number of missiles fired by Iran in the past 24 hours was the lowest since the war began, suggesting a shift in the conflict’s dynamics.

Prime Minister Shehbaz Sharif remarked, “The entire region is currently in a state of war,” highlighting the broader implications of the conflict beyond just oil supply. Economic analysts, such as Amer Zafar Durrani, have pointed out that while oil prices are a concern, the real macroeconomic trigger for Pakistan is the depreciation of its currency, which could have long-lasting effects on the economy.

As the situation continues to evolve, the Pakistani government is under pressure to manage the crisis effectively while navigating the complexities of international relations and regional stability. Details remain unconfirmed regarding the long-term impacts of the Iran war on Pakistan’s energy landscape.

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