$800 Million Weekly Oil Bill: What's Pushing Bankrupt Pakistan To Seek Iran-US Peace Deal?

Pakistan’s Prime Minister Shehbaz Sharif on Wednesday highlighted the severe economic strain his country is facing due to the ongoing West Asia conflict. Sharif revealed that Pakistan’s weekly oil bill has surged to $800 million. The spike follows disruptions in global supply routes, particularly through the Strait of Hormuz, after joint US-Israeli strikes on Iran earlier this year.

Addressing a federal cabinet meeting, the Prime Minister underlined how sharply fuel costs have risen. “Our weekly pre-war oil bill was around $300m, and today it is up to $800m,” Sharif said, pointing to the financial pressure on an already fragile economy, according to a report in Pakistani news outlet Dawn.

Sharif Describes Current Situation ‘Satisfactory’

While

acknowledging the efforts of Petroleum Minister Ali Pervaiz Malik in managing the crisis, the Pakistani leader described the current situation as “satisfactory,” noting that fuel consumption has declined slightly and discussions were ongoing with provinces to extend subsidies.

The sharp increase in energy costs has added to Pakistan’s economic challenges, reversing gains made over the past two years. “With the war, our efforts of two years have witnessed a setback,” the Pakistani PM said. He maintained that foreign reserves remain stable, despite paying back debts, which included a $3.45 billion deposit to the United Arab Emirates (UAE), citing support from allies like Saudi Arabia for providing financial assistance.

Amid the mounting pressure, Islamabad has intensified diplomatic outreach, stressing the urgent need for de-escalation between the US and Iran. Sharif pointed to ongoing efforts involving Pakistani officials, including Army Chief Asim Munir and Deputy PM Ishaq Dar, to push for regional stability. He also referred to engagements with Iranian Foreign Minister Abbas Araghchi and recalled that “many diplomatic efforts were made,” alongside the ceasefire extension announced by US President Donald Trump.

With fuel costs soaring and economic pressure mounting, the developments underscore why Pakistan is increasingly reliant on a potential Iran-US understanding to stabilise energy flows and ease its financial burden.