Pakistan's Iranian Oil Smuggling Drops by 60% Amid US-Israeli Conflict

The smuggling of Iranian oil into Pakistan has drastically declined by at least 60% over the past month and a half, according to sources in the oil sector. At least six tankers carrying petroleum products from Iran were destroyed by terrorists during this period, causing significant losses for those involved in the illegal business.

Iranian oil smuggling into Pakistan increased significantly after the US-Israeli war on Tehran began in February, pushing crude oil prices above $100 per barrel. The conflict led to a closure of the Strait of Hormuz, which is the world's most critical energy transit chokepoint, carrying roughly 20% of global oil and 20% of liquefied natural gas (LNG).

Pakistan faced a potential shortage of oil supplies due to its dependence on imported fuel. However, the influx of smuggled Iranian oil helped the country avoid rationing of oil products, unlike India, Bangladesh, and Sri Lanka in the region.