Pak as a global trade Hub–Energy security is key |
Pakistan has faced the challenges of volatile global energy markets for a long time, which have hampered the country´s capacity to develop economically and ensure energy security.
Due to the disastrous Iran-US conflict and the effective closure of the Strait of Hormuz, Pakistan’s long-standing weakness has become a strategic advantage. This presents a once-in-a-lifetime chance for Pakistan to reshape its energy future and the regional trade architecture.
The eruption of hostilities between Iran, Israel and the United States brought the world to the brink of an economic catastrophe. The Strait of Hormuz, through which roughly 27 per cent of the world’s crude oil and petroleum products and 22 per cent of global LNG trade passes, was effectively severed as a commercial artery. Shipping traffic plummeted from 138 vessels daily to just three ships by March 2026. Insurance providers withdrew coverage entirely. The International Energy Agency described it as the greatest threat to global energy security in history. The cascade of consequences did not stop at energy prices. Global supply chains are fractured. Manufacturing slowed across three continents. And the illusion of invulnerability that had long protected the Gulf states was shattered.
Nowhere was this more devastatingly exposed than in the United Arab Emirates. The Iranian armed forces issued explicit warnings for the evacuation of Jebel Ali Port, Khalifa Port and Fujairah Port, declaring them legitimate targets. Jebel Ali, the busiest port in the........