Strait of Hormuz Closure Fears Put Pakistan’s 90% Energy Supply and Economy at Grave Risk

ISLAMABAD: The escalating military conflict between the United States and Iran has raised alarming fears over a potential closure of the Strait of Hormuz — a scenario that could trigger a catastrophic economic crisis for Pakistan and send shockwaves across global energy markets.
Pakistan is critically dependent on the narrow waterway, importing approximately 90 percent of its oil and liquefied natural gas (LNG) through this single chokepoint. Globally, the strait facilitates the passage of nearly 20 million barrels of crude oil per day, accounting for roughly one-fifth of the world’s total energy consumption. Any sustained disruption would send oil prices spiraling and destabilize economies worldwide.
For Pakistan, the stakes are especially high. The country’s 95 percent of foreign trade is linked to the Arabian Sea corridor, and current domestic energy reserves are estimated to last no longer than one month under normal consumption patterns — leaving virtually no buffer against a prolonged supply shock.
Economists warn that a blockade of the strait would trigger sharp increases in petrol, diesel, and electricity prices across Pakistan, bringing agricultural and industrial activity to a near standstill. The fallout would further aggravate the country’s already fragile economic indicators, deepening the inflation crisis, rising poverty levels, and balance of payments pressures that have persistently challenged policymakers.
Government circles have reportedly begun consultations on emergency energy procurement strategies and the possibility of accelerating strategic reserve buildups. However, analysts caution that no viable short-term alternative to Hormuz-routed supplies exists, leaving Pakistan dangerously exposed should the conflict intensify further.