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US-Iran War Jolts Pakistan Economy As Oil Prices Surge
US-Iran War Jolts Pakistan Economy As Oil Prices Surge, Shehbaz Sharif Flags Strain
The US-Iran war has sharply increased global oil prices, severely impacting Pakistan’s economy, with its weekly oil import bill surging from $300 million to $800 million.
The ongoing US-Iran war has significantly impacted Pakistan’s economic trajectory, with Prime Minister Shehbaz Sharif warning that recent gains have been undermined by escalating global fuel costs and regional instability, according to a PTI report.
Addressing a cabinet meeting, Sharif said the conflict had disrupted economic progress made over the past two years.
Highlighting the sharp surge in energy costs, he noted, “Our weekly pre-war oil bill was around USD 300 million, and today it is up to USD 800 million.”
He added that a dedicated task force is monitoring developments daily as Pakistan grapples with the fallout of rising global fuel prices.
Sharif emphasised the need for collective action to navigate the crisis, while reiterating Islamabad’s commitment to easing tensions between Washington and Tehran.
He informed the cabinet that Pakistan had facilitated talks between the two sides, which began in Islamabad on April 11 and continued for 21 hours.
A ceasefire, he said, is currently holding, and efforts are ongoing to sustain dialogue.
PAKISTAN’S DIPLOMATIC PUSH FOR REGIONAL STABILITY
Sharif detailed Pakistan’s diplomatic outreach, including engagements with Iranian Foreign Minister Abbas Araghchi.
“Before the Iranian Foreign Minister visited Russia, I spoke with him on the phone. He will give a positive response soon,” Sharif said, expressing hope for an early resolution to the conflict.
Pakistan is now planning to host a second round of talks between the United States and Iran.
Sharif also praised officials, including Field Marshal Asim Munir and Foreign Minister Ishaq Dar, for trying “their best to restore peace in the region.”
Meanwhile, US President Donald Trump indicated openness to dialogue, stating that US and Iranian officials could communicate by phone to seek a peaceful resolution.
He also extended a ceasefire arrangement indefinitely to allow Tehran more time to formulate a proposal.
BLOCKADE, OIL SPIKE AND GLOBAL RIPPLE EFFECTS
According to AFP, tensions remain high as the United States continues a naval blockade of Iran, a move Trump suggested could persist for months.
The blockade has contributed to a sharp rise in oil prices, with Brent crude jumping 7.6 per cent to $119.69 per barrel, its highest level in over four years.
Trump defended the strategy, saying it was more effective than direct military strikes.
“They are choking like a stuffed pig. And it is going to be worse for them,” he told Axios, underscoring the pressure campaign on Tehran.
The economic consequences are being felt globally.
The United Nations Development Programme warned that the war could push more than 30 million people into poverty across 160 countries.
UNDP chief Alexander De Croo described the situation as “development in reverse.”
GEOPOLITICAL STRAINS AND HUMANITARIAN CONCERNS
AFP reported that diplomatic efforts remain stalled, with Russia cautioning against renewed hostilities and European allies showing reluctance to support US actions.
Iran, meanwhile, has sought leverage by exerting control over the Strait of Hormuz, a critical artery for global oil supply.
On the ground, the economic strain is evident within Iran, where the national currency has hit historic lows.
Civilians have expressed growing frustration.
“Every time in recent years that negotiations have taken place, the economic situation of the people has only gotten worse,” an Iranian resident told AFP.
The conflict has also intensified humanitarian concerns in the wider region, with spillover effects in Lebanon and warnings of rising hunger and instability.
Source: News18.com
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