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 countries reliant on imports.

Pakistan, which imports over 80 percent of its oil needs, has seen its oil imports total $10.71 billion between July 2025 and February 2026. The recent energy crisis has resulted in the largest fuel price increase in the nation’s history, with petrol prices rising to $1.15 per litre and diesel to $1.20 per litre, marking a 20 percent increase since the previous week.

Impact on Households and Economy

The fuel crisis has emerged during the final days of Ramadan, significantly affecting household budgets across the country. Prime Minister Shehbaz Sharif remarked, “The entire region is currently in a state of war,” highlighting the broader implications of the conflict.

Amer Zafar Durrani, an energy expert, noted that “transport dominates petroleum consumption,” indicating that the rising fuel costs are likely to have a cascading effect on various sectors of the economy. He also warned that the biggest risk does not stem solely from oil prices but rather from currency depreciation, which could further destabilize the economy.

US Military Actions and Regional Tensions

In the backdrop of these developments, the United States has intensified its military operations against Iran, with Defense Secretary Pete Hegseth stating, “Today will be yet again our most intense day of strikes inside Iran.” This escalation aims to dismantle Iran’s missile capabilities and defense industrial base, contributing to the ongoing volatility in the region.

As the situation unfolds, Qatar remains Pakistan’s primary LNG supplier, with its cargoes also passing through the critical Strait of Hormuz. The disruption of these supply routes poses a significant challenge for Pakistan’s energy security.

Details remain unconfirmed regarding the long-term implications of these military actions and their impact on global oil supply and prices. The ongoing conflict in the Middle East continues to have significant ramifications for energy markets worldwide.

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