Middle East | Pakistan

Hit by the biggest energy supply shock in decades during the Middle East war, import-dependent India is expanding domestic crude exploration, its oil minister says. India, the world’s third-largest importer of oil and the second-largest buyer of liquefied petroleum gas, faced major disruptions due to restrictions on the Strait of Hormuz during the conflict between the United States and Iran. With a temporary US-Iran deal in place to pause hostilities, oil and gas shipments are flowing through the Gulf waterway again, and restrictions and price hikes in India are being rolled back. But Minister of Petroleum and Natural Gas Hardeep Singh Puri said the energy crunch provided fresh impetus for India’s expansion of domestic supplies. “We are currently in the process… to bid out about 250,000 square kilometres (96,500 square miles) of unexplored area,” Puri told AFP. India is a modest producer in global terms. Domestic crude production in 2025-2026 was 25.98 million metric tonnes, according to the oil ministry. Tha...

ISLAMABAD: As part of Pakistan’s efforts to help broker an end to the war in the Middle East, Prime Minister Shehbaz Sharif will pay official visits to Iran and Turkiye from July 3 to 6, sources in the PM Office told Dawn on Monday. The US military said it carried out new strikes on early Sunday on multiple targets in Iran, in response to a fresh Iranian attack on a ship transiting the Strait of Hormuz. Tehran responded by launching strikes against US bases in Bahrain and Kuwait before both sides agreed to halt attacks. Sources said that during his visit, the prime minister will meet the leadership of both Iran and Turkiye and call on Tehran and Washington to exercise restraint, particularly following the signing of the Islamabad Memorandum of Understanding (MoU) as part of the peace process. The strikes underscored the fragility of the Pakistan-brokered interim peace deal aimed at ending a war launched by the United States and Israel on February 28, which disrupted shipping through the Strait of Hormuz and r...

Interior Minister Mohsin Naqvi met with his Iranian counterpart, Eskandar Momeni, and stated that Pakistan would continue its efforts for lasting peace in the Middle East, the interior ministry said on Wednesday. In a statement, the ministry said the two ministers met in Islamabad, and held a detailed discussion on Pak-Iran ties and the latest situation in the region. Momeni was part of a delegation led by Iranian President Masoud Pezeshkian, which visited Pakistan on Tuesday after the US and Iran signed a ‘Islamabad Memorandum of Understanding’ (MoU) to end the Middle East conflict and held high-level talks in Burgenstock, Switzerland. According to the ministry, the Iranian minister thanked Naqvi for the warm welcome accorded to Pezeshkian and the Iranian delegation. Both ministers expressed satisfaction at the de-escalation in the region. Meanwhile, Naqvi congratulated the Iranian minister on the joint statement issued after the US-Iran talks in Switzerland. “This agreement would not have been possible with...

Beneath the scorching sun in the Sindh mango belt, labourers balance on tree branches, working at a swift pace to throw the freshly picked fruit into sacks held ready by farmhands waiting below. Though mango season is well underway, far less of the fruit will be bound for the lucrative export market than usual, with an agriculturally dependent economy caught in the crosshairs of the Middle East crisis that the government has helped mediate. An initial deal between the warring sides announced by Islamabad this week has come too late for this mango season, which began in June in Sindh. Mango traders told AFP they expect export sales to fall at least 30 per cent this year due to dampened demand in key markets, including the Gulf, and soaring shipping costs. Adding to the financial pain, local households struggling with a spike in inflation emanating from the regional crisis are holding off on buying the fruit, depressing domestic sales. This photograph taken on June 4, 2026 shows mango farm owner Ali Palh showin...

How Trump tried to use a global crisis to push a regional realignment agenda in Middle East

Saudi Arabia launched its second national carrier Riyadh Air after more than a year of delays on Wednesday, defying the economic turmoil triggered by the Middle East war and strong competition from established Gulf airlines. A London-bound Boeing 787 Dreamliner in Riyadh Air’s white and lavender livery took off at 2:30am local time, putting in motion a flagship project in Saudi Arabia’s push to reduce its economic reliance on oil. Riyadh Air, the country’s second state-owned airline after Jeddah-based Saudia, is meant to help turn the Saudi capital into a global hub to rival Dubai, the world’s busiest for international passengers. “We want to bring glamour, we want to bring refinement, we want to bring grace back,” Riyadh Air CEO Tony Douglas told AFP. The launch, originally planned for 2025, was set back by delivery delays from Boeing, which has suffered a series of manufacturing and safety problems in recent years. It also follows unprecedented attacks from Iran, which has fired thousands of drones and miss...

Residents of Gaza, south Lebanon, northern Israel and Kuwait were all under fire this week despite United States-arranged ceasefires supposedly in force in their regions. Israeli airstrikes hit Gaza and Lebanon, with Israeli forces still actively deployed in both places. Hezbollah rockets struck northern Israel, and Iranian attacks hit Kuwait’s international airport. The continued violence prompted US President Donald Trump to comment on Wednesday that ceasefires in the Middle East involved “shooting in a more moderate manner” rather than a total halt in fighting. Three truces his administration has negotiated were meant to have stopped the warfare. But while major fighting has greatly reduced, munitions are still falling and people still dying. This is how the ceasefires — and ongoing fighting — are playing out: What’s happening with the ceasefire in Gaza? The US brokered a ceasefire between Israel and Hamas on October 10, 2025, ending major warfare. The ceasefire deal involved a halt to all fighting, Hamas ...

Prime Minister Shehbaz Sharif on Monday called for joint efforts by Pakistan and China to promote peace and stability in the Middle East, while thanking the Chinese leadership for supporting Islamabad’s ceasefire initiatives in the region.

Over 1.5 million Muslims began filling a vast tent city in Makkah on Monday for the annual Haj pilgrimage carried out against the backdrop of hopes for an end to the war in the Middle East. The white-robed pilgrims on buses or on foot arrived at the sprawling encampment in Mina after performing the tawaf. The start of the Haj came as US President Donald Trump continued to send mixed signals over a possible agreement to extend an uneasy ceasefire with Iran and a deal to reopen the Strait of Hormuz. This year’s rites, drawing Muslim worshippers from across the world, including Iran, follow waves of attacks on targets in Saudi Arabia and its Gulf neighbours. Saudi officials have been keen to keep conflict far from the minds of visitors, many of whom have travelled long distances for one of the world’s largest annual pilgrimages. Despite the uncertainty triggered by the conflict, Saudi officials noted over the weekend that more pilgrims had travelled from abroad to participate in this year’s Haj than in 2025. But...

Over 1.5 million pilgrims have reached Saudi Arabia from outside the kingdom for the upcoming Haj, according to a Saudi official, exceeding the number of international visitors last year despite the war in the Middle East. The conflict triggered by the US and Israeli strikes on Iran in late February saw Tehran order waves of strikes on targets in Saudi Arabia and across the Gulf, prompting widespread air traffic disruptions and causing travel costs to surge. Major Gulf airlines in the UAE, Qatar and Bahrain have worked to quickly restore much of their operational capacity after weeks of airspace closures and flight cancellations. Despite the complications, pilgrims have continued to flock to Saudi Arabia to participate in this year’s Haj. “The total number of pilgrims arriving from abroad has reached 1,518,153,” Saleh Al-Murabba, the commander of Saudi Arabia’s Haj Passport Forces, told a press conference late Friday. These figures are expected to rise further over the next two days as pilgrims continue to ar...

While macroeconomic stability improved in the first half of fiscal year 2026, the war in the Middle East poses risks to the economic outlook amid heightened uncertainty, the State Bank of Pakistan (SBP) said on Tuesday. The SBP released its Half Year Report 2025-26 (The State of Pakistan’s Economy) on Tuesday, showing that Pakistan’s macroeconomic stability strengthened in the first half of the fiscal year despite headwinds from uncertainty regarding global trade and domestic floods. However, the report noted that the war in the Middle East poses “significant risks to the macroeconomic outlook”, as supply chain disruptions are likely to affect the inflation trajectory, external trade and remittance flows, and the country’s economic activity, according to an SBP press release. Discussing the outlook for FY26, the report notes that the latest data on high-frequency indicators — including Purchasing Managers’ Index (PMI), LSM and construction — suggests that economic activity maintained the momentum through Febr...

Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone conversation with Faisal bin Farhan Al Saud to discuss the evolving situation in the Middle East and other issues of mutual interest.

Indian Prime Minister Narendra Modi on Sunday urged the people of to cut down on petrol and diesel consumption amid supply disruptions due to the Middle East war. India is one of the few countries in the region that has not increased the prices of petrol and diesel for domestic consumers or rationed supplies. But it has increased prices of liquefied petroleum gas (LPG) — a primary cooking fuel in this country — after disruptions following the US-Israeli strikes on Iran, which led to Iran’s near-total blockade of the strategic Strait of Hormuz. “We have to reduce our use of petrol and diesel. In cities with metro lines, we should try to travel by metro … If we must use a car, then we should try to car pool,” he said, addressing a gathering in southern Telangana state. He added that restrictions on use were also necessary to save foreign currency spent on fuel imports. “We must also place a strong emphasis on saving foreign exchange, as petrol and diesel have become so expensive globally.” Modi also urged peopl...

China’s Foreign Minister Wang Yi said Beijing would play a “greater role” in ending hostilities in the Middle East during talks with his Iranian counterpart on Wednesday, a week before US President Donald Trump is due to meet Xi Jinping. China is a key customer for Iranian oil, defying sanctions imposed by the United States, and is directly affected by the blockage of the Strait of Hormuz, bordered by Iran. Beijing has quietly engaged in efforts to resolve the weekslong crisis and its diplomacy is credited with playing an important role in the fragile ceasefire agreed between Washington and Tehran. China “will work harder to ease tensions and end the fighting, continue to support the launch of peace talks, and play a greater role in restoring peace and tranquillity to the Middle East”, Wang told Iran’s Abbas Araghchi in Beijing. “China considers that a complete cessation of fighting must be achieved without delay, that it is even more unacceptable to restart hostilities, and that continuing to negotiate remai...

Prime Minister Shehbaz Sharif called on PML-N supremo Nawaz Sharif at their Jati Umra residence in Lahore on Sunday, a statement issued by the PM’s Office (PMO) said, adding that the Middle East conflict and the political situation in the country were discussed during the meeting. Punjab Chief Minister Maryam Nawaz was also present on the occasion. The PMO statement said the premier briefed Nawaz on the “situation in the country” and exchanged views on the political situation. He further informed him about the situation in the Middle East and Pakistan’s efforts for the restoration of peace in the region, the statement added. The conflict in the Middle East, which is now more than two months old, began with US-Israeli strikes on Iran on February 28. And while hostilities have paused following a Pakistan-brokered two-week ceasefire on April 8 — which has been extended indefinitely by US President Donald Trump — the world continues to face its consequences. Pakistan’s civil and military leadership has been engag...

Deputy Prime Minister and Foreign Minister Ishaq Dar on Saturday discussed the regional situation in the Middle East with Kuwait’s Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, the Foreign Office (FO) said. In a statement, the FO said that the two leaders “discussed the evolving regional situation and exchanged views on its wider economic implications”. Dar underscored Pakistan’s “continued efforts to promote constructive engagement and diplomacy in support of peace and stability in the region and beyond”. “Foreign Minister Sheikh Jarrah commended Pakistan’s sincere efforts aimed at fostering lasting peace and security for the Ummah as well as the wider international community,” the FO statement noted. Both sides reaffirmed the strong fraternal ties between Pakistan and Kuwait and agreed to remain in close contact, it said. Dar’s call with his Kuwaiti counterpart comes amid the crisis in the Strait of Hormuz — a key shipping route in paralysis since the US-Israel war on Iran began on February 28. Th...

Prime Minister Shehbaz Sharif on Wednesday said that the country’s weekly oil bill has reached $800 million due to the ongoing oil crisis arising from the Middle East conflict. Global fuel prices have skyrocketed over the past two months as shipping through the Strait of Hormuz remains paralysed since the US and Israel launched joint strikes on Iran on February 28. Addressing a meeting of the federal cabinet today, PM Shehbaz commended the efforts of Petroleum Minister Ali Pervaiz Malik for tackling the fuel crisis resulting from the Iran war, stating that the situation now appeared “satisfactory”. On that note, the prime minister remarked that fuel prices in the global markets had risen sharply, noting that “our weekly pre-war oil bill was around $300m, and today it is up to $800m”. He further shared that the country’s fuel consumption “had lessened compared to previous weeks”, stressing that the situation was being monitored regularly. “Consultations are also being held with provinces to extend fuel subsidi...

ISLAMABAD - Prime Minister Shehbaz Sharif Monday received a telephone call from António Costa, President of the European Council and during their cordial conversation, the two leaders exchanged views on the current situation in the Middle East.

ISLAMABAD: The government said on Monday that Pakistan’s economic growth would be affected during the current and next fiscal years due to an almost 20 per cent cut in development budget for fuel subsidies and inflationary impacts of global supply chain disruptions amid the war in the Middle East. “This (cut in development budget) will have a negative impact and, coupled with international oil prices and inflation, will result in economic slowdown and affect our growth target of 4.2pc” for the current year, Planning Minister Ahsan Iqbal said while addressing a news conference. This is the first official confirmation of lower than targeted economic growth, although international lenders have projected the growth rate between 3.2pc and 3.5pc. Responding to the question, Iqbal said that the Public Sector Development Programme (PSDP) for the current year had been slashed by Rs173bn to Rs837bn from the Rs1.01 trillion target set in the budget. He said PSDP was reduced to finance the Prime Minister’s Austerity Fund...

The Pakistan Stock Exchange (PSX)’s benchmark index KSE-100 plunged by over 1,700 points on Monday amid uncertainty over the Middle East conflict. The KSE-100 declined by 1,742.31 points or 1 per cent to close at 172,196.70 from the previous close of 173,939.01 points. The KSE-100 rose to an intraday high of 174,523.76 points at around 11:55am, then declined to an intraday low of 169,226.56 points at 1:05pm, before settling at 172,196.70. According to Topline Securities, the trading began on a “subdued note, reversing the previous session’s upward momentum, with the benchmark index declining to an intraday low of 4,712 points”. “Investor sentiment remained cautious amid escalating geopolitical tensions,” it said, citing increased concerns due to the US seizure of an Iranian-flagged cargo vessel in the Strait of Hormuz and uncertainty over Iran’s participation in the 2nd round of US-Iran talks in Islamabad. “Earlier indications of potential diplomatic engagement, including the possibility of a US delegation vi...