Gulf | Pakistan

ISLAMABAD - Prime Minister Shehbaz Sharif will undertake a one-day official visit to Saudi Arabia on Thursday at the invitation of Saudi Crown Prince and Prime Minister Mohammed bin Salman, with regional security, the evolving situation in the Gulf, the Yemen conflict, and progress in the US-Iran negotiations expected to dominate.

KARACHI: The State Bank is widely expected to keep its policy interest rate unchanged at its monetary policy meeting on Monday (July 27), as policymakers are unlikely to alter the benchmark rate amid heightened uncertainty following the Gulf war. Economists, researchers and analysts are still assessing the war’s impact on Pakistan, but there is broad agreement that it pushed global oil prices above $100 per barrel, affecting economies worldwide, including Pakistan. Analysts closely tracking the economy say it would be difficult to maintain macroeconomic stability with sluggish growth. They believe the State Bank is unlikely to risk undermining that stability by changing the policy rate. Despite the surge in global oil prices, which has intensified inflationary pressures, the government and the State Bank hope to keep average CPI inflation within the 7-8pc range in FY27. While some analysts question this outlook, most believe it will depend on developments in the region. The US strikes on Iran continued, while...

A US missile struck the Iranian island of Larak on Wednesday, the Tasnim news agency reported, in the latest attack to target the Islamic republic’s islands in and around the Strait of Hormuz. The islands have been hit multiple times as the two sides fight over the strategic waterway, which Iran has sealed following the collapse of a preliminary deal aimed at ending the war. Here AFP looks at the significance of the Iranian islands in the strait and the nearby Gulf: Larak This small island occupies a particularly strategic position at the narrowest point of the Strait of Hormuz, the key shipping route that Iran has choked shut. A site for Iranian oil exports since 1987, it also hosts a military base. It came to prominence recently as “Tehran’s tollbooth” — a stopping-off point for the handful of vessels that Iran approved to exit or enter the Gulf during its initial blockade earlier in the war. Ships that used this route had to pay a substantial fee, according to maritime data company Lloyd’s List Intelligenc...

Iran targeted US radar and air defence installations in the Gulf on Tuesday, warning Washington of “more decisive and powerful” attacks to come as the US military completed a fresh round of strikes on the country. Iran’s Revolutionary Guards said they had attacked and stopped two “non-compliant oil tankers” attempting to transit the Strait of Hormuz, part of an effort to tighten its grip on the vital waterway while the war reignited. Following the deaths of at least three US soldiers in the past several days, the United States launched a new round of attacks against Iran late on Monday which it said were “designed to further degrade Iranian military capabilities used to attack commercial shipping” in the strait. It later said that it had completed the strikes during which US forces “struck Iranian military command centres, maritime capabilities, missile and drone launch sites, and air defence systems to degrade Iran’s ability to continue attacking commercial vessels flowing through the Strait of Hormuz”. “Com...

THE Islamabad MoU, and the broader US-Iran ceasefire this document is supposed to underpin, is unravelling before our eyes. Following a recent escalation, Washington and Tehran have been trading fire across the Gulf, with each round more intense than the last. The US has struck locations in Iran, while Tehran has responded in kind by hitting targets in the GCC states allied with the US, as well as in Iraq, Jordan and Syria. Both sides have hit civilian sites, including water plants. The immediate trigger for hostilities was Iran’s demand that only its ‘approved’ route be used for transit of the Strait of Hormuz. Its attacks on ships using ‘unauthorised’ routes invited an American military response. Apparently, both sides were reading the MoU’s clause regarding the vital strait differently. Yet beyond Hormuz, Israel’s attacks in Lebanon have also put great strain on the MoU. As of Saturday, the MoU seemed all but dead, as Iran’s deputy foreign minister has said his country is “no longer implementing” its commi...

Iran launched more attacks on Washington’s Gulf allies and Jordan on Saturday after a seventh straight night of US strikes on Iranian military targets, escalating the war one week after a ceasefire collapsed. Kuwait came under sustained attack, with a desalination plant hit and operations at Kuwait International Airport suspended due to repeated missile and drone threats. Iran’s Islamic Revolutionary Guard Corps said it had struck a US military support centre at Camp Arifjan and destroyed a radar facility at Ali Al Salem Air Base. Kuwait Petroleum Corporation later said one of its oil facilities had been hit in “repeated Iranian attacks”, causing significant damage and some injuries, according to the state news agency. Kuwait’s armed forces said they had intercepted Iranian ballistic missiles and drones early on Saturday, adding that a number of firefighters and oil sector workers had been injured while responding to the attacks. Iran was responding to US attacks on bridges, power facilities and other infrast...

Iran launched renewed attacks on US Gulf allies on Saturday after a seventh straight night of US strikes targeting Iranian military sites, including logistics infrastructure, escalating the war one week after a fragile ceasefire agreement fell apart. Both sides also took aim at shipping traffic, with the US saying it was enforcing a naval blockade while Iran said it targeted vessels that violated its rules on navigating the Strait of Hormuz, the vital waterway for one-fifth of the world’s oil supply. Oil prices climbed more than four per cent on Friday to their highest level in more than a month, applying political pressure on US President Donald Trump as his Republican Party tries to hold on to power in November congressional elections. Washington and Tehran have been testing the limits of escalation since their ceasefire agreement collapsed last week, raising the prospect of a return to all-out war. The US military’s Central Command said it concluded its latest round of attacks by hitting surveillance sites...

Iran said it launched fresh attacks on American facilities in the Gulf on Friday after a sixth consecutive night of US strikes on Iranian military facilities, as last month’s truce descended into daily attacks and counterattacks. The US military said it completed another night of strikes on Iran “to further degrade Iranian military capabilities”, including on Qeshm Island and near Bandar Abbas, home to Iran’s largest port and key navy and Revolutionary Guards facilities. “US forces, including fighter jets, aerial drones, and warships, launched precision munitions that hit dozens of Iranian military targets such as coastal surveillance and air defense sites, military logistics infrastructure, and maritime capabilities,” the US Central Command said in a statement. Iran has fired missiles and drones at US military bases in neighbouring states, including an air base in Jordan. In the early hours of Friday, Iran’s military said it had attacked US facilities in Bahrain and Kuwait. Several explosion-like sounds were...

Iran said it launched fresh attacks on US facilities in the Gulf on Friday after a sixth consecutive night of US strikes on Iranian military facilities, as last month’s truce descended into daily attacks and counterattacks. The US military said it completed another night of strikes on Iran “to further degrade Iranian military capabilities”, including on Qeshm Island and near Bandar Abbas, home to Iran’s largest port and key navy and Revolutionary Guards facilities. “US forces, including fighter jets, aerial drones, and warships, launched precision munitions that hit dozens of Iranian military targets such as coastal surveillance and air defense sites, military logistics infrastructure, and maritime capabilities,” the US Central Command said in a statement. Iran has fired missiles and drones at US military bases in neighbouring states, including an air base in Jordan. In the early hours of Friday, Iran’s military said it had attacked US facilities in Bahrain and Kuwait. Several explosion-like sounds were heard...

KARACHI: The ongoing war in the Gulf has further reduced foreign investment in Pakistan, with Bahrain withdrawing its investments from domestic bonds within the first 10 days of the current fiscal year. The State Bank reported on Thursday that there was no inflow of foreign investment into the domestic market during the first 10 days of 2026-27, particularly from the Gulf states. The renewed US-Israeli war on Iran has not only pushed up oil prices but also left countries like Pakistan facing increasing trouble, as neither foreign investment is coming from the region nor is the market stable for exports. Only a $4 million inflow was noted from Luxembourg in the treasury bills, which pay the highest returns, up to 11.5 per cent, in developing countries. Bahrain withdraws $30m from bonds in first 10 days of FY27 However, the conflict closed off an option for Pakistan to receive inflows from the Middle Eastern countries. As a result, the UAE immediately withdrew $3.5bn held in the State Bank of Pakistan’s account...

The US, early on Thursday, launched a second wave of attacks on Iran’s coastal defences and missile sites within a span of 24 hours after reimposing a naval blockade of Iranian ports, and Tehran responded by again targeting US military sites in neighboring Gulf countries. The latest escalation comes days after a fragile truce collapsed, raising the specter of a return to full-scale war, with Iran once again threatening to shut off more regional energy exports after blocking the vital Strait of Hormuz. Hostilities have intensified since Iran said late on Saturday it had closed the Strait of Hormuz. Military operations are also keeping ships from transiting the vital artery, which carried about a fifth of global oil and gas shipments before the US-Israeli war on Iran. Brent crude oil, the international benchmark, closed at a one-month high of $84.95 a barrel on Wednesday. US Central Command said the military had attacked coastal defence systems and cruise missile storage and launch sites on Iran’s Greater Tunb ...

Says region must learn from Iran war, not dwell on past; urges inclusive Gulf security architecture after conflict

The United States struck Iran on Monday for a second day running, drawing Tehran’s reprisals against US allies in the Gulf as the foes battle over the status of the strategic Strait of Hormuz. The flare-up is the latest to undermine an interim agreement between Washington and Tehran aimed at ending their war, which has caused global economic shockwaves since it began in late February. The latest salvo by US forces began at 2100 GMT on Sunday, Central Command (Centcom) said on X. The fresh strikes came less than 24 hours after a previous wave in which the US Centcom said 140 Iranian military targets were hit. In a subsequent post, Centcom said it had completed a new wave of “offensive strikes” against Iran, hitting “dozens of targets at multiple locations with precision munitions to degrade Iran’s ability to continue attacking international shipping flowing through the Strait of Hormuz”. “Centcom forces struck Iranian military air-defence systems, coastal radar sites, missile and drone capabilities, and small ...

The US military launched fresh strikes on Iran after the latter struck a container ship on Sunday, while Tehran said it had again closed the Strait of Hormuz and escalated attacks on US facilities in states across the Gulf. The strikes were the latest in a cycle of attacks and counter-attacks as Iran seeks to assert control over shipping through the strait. However, the latest barrage marked a sharp escalation in pace and range. The attacks extended to the United Arab Emirates (UAE), which had not been targeted since early May, and Qatar, a mediator in ceasefire talks that had not come under attack since April. Iran said it closed the strait after firing a warning ​shot that struck a vessel travelling on an “unauthorised route”. It warned that any retaliation over the incident would be met with a “severe response”. Iran later said it had disabled a second vessel. India said one of its nationals was missing after an attack on the container ship GFS Galaxy off the coast of Oman earlier on Sunday. Oman said 23 c...

The US military launched fresh strikes on Iran after the latter struck a container ship on Sunday, while Tehran said it had again closed the Strait of Hormuz and escalated attacks on US facilities in states across the Gulf. The strikes were the latest in a cycle of attacks and counter-attacks as Iran seeks to assert control over shipping through the strait. However, the latest barrage marked a sharp escalation in pace and range. The attacks extended to the United Arab Emirates (UAE), which had not been targeted since early May, and Qatar, a mediator in ceasefire talks that had not come under attack since April. Iran said it closed the strait after firing a warning ​shot that struck a vessel travelling on an “unauthorised route”. It warned that any retaliation over the incident would be met with a “severe response”. Iran later said it had disabled a second vessel. India said one of its nationals was missing after an attack on the container ship GFS Galaxy off the coast of Oman earlier on Sunday. Oman said 23 c...

The US military launched fresh strikes on Iran after the latter struck a container ship on Sunday ‌while Tehran said it had again closed the Strait of Hormuz and escalated attacks on US facilities in states across the Gulf. A series of attacks between the US and Iran over the past several days led President Donald Trump to declare the end of a ceasefire meant to halt the war on Iran that the US and Israel began on February 28, though Trump has left the door open to continued negotiations. Iran said it closed the strait after firing a warning ​shot that struck a vessel travelling on an unapproved route. It warned that any retaliation over the incident would be met with a “severe response.” The US Central Command, however, claimed commercial ​vessels continue to transit through the waterway that carried one-fifth of the world’s oil and LNG shipments before the war. The Central Command said US forces hit 140 Iranian military targets on Saturday, out of more than 300 during three nights of strikes “to degrade Ira...

KARACHI: Regional instability continues to influence market sentiment, negatively impacting Pakistan’s domestic bond and equity markets and foreign direct investment, all of which declined at the end of FY26. Several economic stakeholders were unsure whether the Gulf turmoil, which has recently paused, could last longer, analysts said. They said all countries, except Israel, hoped for a permanent end to the Gulf war against Iran, but the business community was looking at the situation the other way. “Even if the war does not start in the near future, the uncertainty is high enough to keep foreign investors away from the country, such as Pakistan, which faces serious problems with its external account and depends largely on friendly countries and international donors to avoid default,” said a senior banker. Uncertainty drives foreign investors away Foreign direct investment declined by 28 per cent over the first 11 months of outgoing FY26; domestic bonds recorded a net outflow of $550 million, while total outf...

• Regional ministers seek curbs on missiles and proxies • Rubio says final settlement must protect Gulf stability •

US Secretary of State Marco Rubio told Gulf allies on Thursday that any deal with Iran would take their interests into account, as he wrapped up a Middle East trip aimed at selling the Trump administration’s preliminary accord to sceptical regional partners. Speaking at a meeting of Gulf Cooperation Council (GCC) in Bahrain, home to the US Navy’s Fifth Fleet, Rubio said Washington was seeking an enduring peace with long-time foe Iran that would not undermine the security and prosperity of its allies in the oil-rich region, which fear the accord is too soft on Iran. Iran fought two of the world’s most powerful armies — the US and Israel — during the conflict and took effective control of the vital Strait of Hormuz, heavily disrupting oil flows and rattling global energy markets and the wider economy. The war began with US-Israeli strikes on Iran in late February, and Tehran targeted US assets and bases in Gulf countries in retaliation. It, however, has not accepted responsibility for all of those attacks. At t...

KARACHI: Despite the war in the Gulf region, Pakistani workers continued to leave for jobs in countries directly affected by the conflict, particularly during March. Official data showed that during January-May, over 300,000 Pakistanis found employment in Middle Eastern states led by Saudi Arabia and the UAE. The largest number of Pakistani workers left for Saudi Arabia, while around 50,000 emigrated to the UAE, one of the countries most affected by the war. According to data released by the Bureau of Emigration and Overseas Employment, 143,586 Pakistanis left for Saudi Arabia during the five-month period, the highest number for any single destination country. Saudi Arabia was also drawn into the conflict and reportedly faced multiple attacks by Iran targeting American facilities in the kingdom. Although the war, which began on Feb 28, ended after about a month following a ceasefire, intermittent strikes by the US and Israel, as well as retaliatory attacks by Iran, continued to fuel uncertainty across the reg...