Pakistan, Iraq turn to Iran to keep oil and LNG flowing through Hormuz

ISLAMABAD/LONDON: Pakistan and Iraq have reached separate arrangements with Iran to secure the movement of oil and liquefied natural gas shipments through the Strait of Hormuz amid ongoing regional tensions, according to a Reuters report.

The agreements come as conflict in the Middle East continues to disrupt global energy flows and shipping activity through the strategic waterway, which normally handles a significant share of the world’s oil and LNG trade.

Iraq secured safe passage for two very large crude carriers carrying nearly 2 million barrels of oil each through the Strait of Hormuz on Sunday under an understanding with Tehran.

Iraqi officials are also seeking approval for additional shipments as Baghdad works to protect oil exports that account for most of the country’s state revenue.

Pakistan secures LNG shipments

Two tankers carrying Qatari liquefied natural gas are heading to Pakistan under a separate arrangement between Islamabad and Tehran, sources familiar with the discussions said.

Pakistan relies heavily on LNG imports from Gulf countries, particularly during the summer season when electricity demand increases sharply.

Sources said neither Pakistan nor Iraq made direct payments to Iran or the Islamic Revolutionary Guard Corps (IRGC) in connection with the transit arrangements.

Pakistan’s petroleum and information ministries did not immediately comment on the development.

Hormuz disruption impacts global markets

Shipping activity through the Strait of Hormuz has declined significantly since the conflict escalated earlier this year.

Before the crisis, around 3,000 vessels passed through the route each month. Shipping data cited in the report showed traffic has now fallen to roughly 5% of normal levels.

The disruption has contributed to higher global energy prices, with Brent crude oil rising sharply since late February, while LNG prices in Asia and Europe have also increased.

Iran seen tightening control over shipping access

Energy analysts said Iran appears to be shifting from efforts to block the Strait of Hormuz toward controlling access through the route.

Iranian authorities have also asked Iraq to submit detailed documentation for tankers seeking passage, including cargo details, vessel ownership, and destinations.

A Pakistani source familiar with the negotiations said the process had faced operational complications at different stages.