Emergency Measures in Pakistan
On March 10, 2026, Pakistan announced sweeping emergency austerity and fuel conservation measures in response to significant disruptions in oil and gas supply caused by the ongoing Iran war. The conflict has severely impacted the Strait of Hormuz, a vital waterway for traded oil, further complicating Pakistan’s energy situation.
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. The recent energy crisis has triggered the largest fuel price increase in Pakistan’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
The fuel crisis coincides with the final days of Ramadan, placing additional strain on household budgets. Prime Minister Shehbaz Sharif remarked, “The entire region is currently in a state of war,” highlighting the broader implications of the conflict on the region’s stability and economic conditions.
Amer Zafar Durrani, an energy expert, noted that transport dominates petroleum consumption in Pakistan, emphasizing the critical need for stable fuel supplies. He also warned that the biggest risk does not stem from oil prices alone; rather, the real macroeconomic trigger is currency depreciation, which could exacerbate the situation.
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 that today would be one of the most intense days of strikes inside Iran, indicating a significant escalation in military operations.
Despite these military efforts, the US Defense Secretary also reported that the number of missiles fired by Iran in the past 24 hours was the lowest since the war began, suggesting a possible shift in the conflict’s dynamics.
Broader Implications
The ongoing conflict in the Middle East has significant implications for global oil supply and prices, affecting countries far beyond the immediate region. As Pakistan grapples with the fallout from the Iran war, the situation underscores the interconnectedness of global energy markets and the potential for widespread economic repercussions.
Details remain unconfirmed regarding the full extent of the crisis and its long-term effects on Pakistan’s economy and energy security.
