Gulf Region Conflict: Pakistan To Face Hikes in Oil Prices
Pakistani oil consumers are set to face further increase in oil prices from the next fortnight on March 15, 2026 as the prices in the international market witnessed an increase again on Tuesday due to the widening U.S.-Israeli conflict.
Pakistan takes a huge chunk of oil supplies from Saudi Arabia under a long term arrangement. According to media reports, that refinery had been shut down temporarily which would also affect crude oil supplies to Pakistan.
At present, two crude oil cargoes have been stuck which were carrying supplies for two Pakistani’s refineries.
The disruption has already pushed benchmark oil prices to levels which were not witnessed since early 2025. Analysts and trading firms have forecasts for the rest of 2026 warning that Brent could average around $80 this year. In extreme scenarios, they said that oil prices could spike to between $120 and $150 a barrel if the conflict persists.
The government has recently increased the prices of high speed diesel and petrol up to Rs 8 per liter effective from March 1.
Read More: Govt increases prices of petrol, diesel
Due to conflict in the Middle East, the oil prices in the international market continue rising which are set to push the domestic oil prices in Pakistan.
Pakistan is highly dependent on imported fuel being net importer as it meets almost 80 percent needs of oil through imports.
Brent crude futures jumped to around $78.83 a barrel on Tuesday whereas the U.S. West Texas Intermediate topped roughly $71.97.
The increase in oil prices in the global market marks a third straight day of gains. Markets were on edge over threats to shipping through the Strait of Hormuz. The strait is a narrow chokepoint through which roughly one-fifth of global oil and liquefied natural gas flows.
The price jump has followed coordinated U.S. and Israeli air strikes on Iran that began late February 28. Iran has retaliated with missile and drone attacks on regional energy infrastructure.
It had also warned to halt maritime traffic through the strategic Persian Gulf waterway. Insurers have pulled coverage for tankers, and even many vessels were avoiding the route altogether.
Refined product futures are also moving higher amid concerns of tightening the regional fuel supplies which also included diesel and gasoline.
A tanker has been hit by drones in the Strait of Hormuz and Saudi Arabia’s largest oil refinery has been shut down temporarily after a separate attack. Natural gas prices in Europe have also affected as some contracts jumped sharply on fears of broader supply chain disruption.
Amid these tensions, OPEC+ producers have agreed to increase output in an effort to temper market tightness. But many industry watchers say that only easing of the conflict had assured safe passage through the Gulf to stabilise prices.