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CommoditiesHigh Impact•2 March 2026•

1 min read

Pakistan Seeks Saudi Red Sea Oil as Strait of Hormuz Closure Disrupts Supplies

Infographic of oil tankers and the Strait of Hormuz map with text showing a 9% oil price increase to 104.

Key Facts

1Pakistan is seeking to be included in Saudi Arabia’s preferred buyers for crude exported via the Red Sea.

2Oil and LNG tanker traffic in the Strait of Hormuz has halted due to escalating conflict and Iranian retaliatory strikes.

Pakistan is actively seeking to join Saudi Arabia’s list of preferred buyers to secure crude oil deliveries via Red Sea terminals. This strategic shift follows a complete halt in oil and LNG tanker traffic through the Strait of Hormuz due to escalating regional conflict and Iranian retaliatory strikes. The Strait of Hormuz is a critical global energy chokepoint, facilitating approximately 20% of the world's total oil and LNG flows. Retaliatory strikes on Gulf infrastructure have rendered the passage impassable, forcing energy-dependent nations to urgently reroute their supply chains. This massive supply shock is expected to trigger immediate and sharp price increases for Brent Crude and WTI benchmarks. Furthermore, the disruption poses significant economic risks for Pakistan, potentially impacting the PKR/USD exchange rate amid rising energy costs.