Web Desk: Federal Minister for Petroleum Ali Pervaiz Malik met Nawaf bin Said Al-Malki, Ambassador of the Saudi Arabia to Pakistan, to discuss energy cooperation amid growing concerns over disruptions in the Strait of Hormuz.
During the meeting, Pakistan formally requested an alternative crude oil supply route through Yanbu Port on the Red Sea. The Saudi envoy assured Islamabad of full support, according to officials familiar with the discussions.
The engagement comes as regional tensions have disrupted shipping through the Strait of Hormuz, a critical maritime chokepoint through which considerable South and East Asian oil exports pass daily.
The Strait of Hormuz connects the Persian Gulf to global markets and handles roughly one-fifth of the world’s oil trade. Any halt or slowdown in tanker traffic through the waterway immediately strains global energy markets, drives up prices and complicates supply chains for importing countries.
Recent security concerns and shipping risks have forced several vessels to delay transit or reroute cargoes, tightening available supply in the short term.
For Pakistan, which relies heavily on imported crude and refined petroleum products, sustained disruption could pose immediate challenges. Higher freight costs, insurance premiums and benchmark oil prices may translate into increased domestic fuel prices and added pressure on foreign exchange reserves while inflation can also skyrocket.
Saudi Arabia operates major export infrastructure on its Red Sea coast, including facilities at Yanbu, which allow crude shipments to bypass the Strait of Hormuz entirely. Oil transported via east-west pipelines inside the kingdom can reach Yanbu and then be shipped through the Red Sea to international buyers.
By requesting supplies routed through Yanbu, Pakistan aims to mitigate the risk of delays and potential shortages if Hormuz traffic remains constrained.
Energy analysts say that in the coming days, Pakistan could face tighter supply schedules if disruptions persist. Refineries dependent on Gulf crude may experience logistical delays, while global price volatility could push up import bills.
However, assurances from Riyadh may help stabilise near-term supply expectations. Saudi Arabia remains one of Pakistan’s largest crude suppliers and has previously provided deferred payment facilities during periods of economic strain.
Officials said both sides reaffirmed their commitment to maintaining uninterrupted energy cooperation. Further technical consultations are expected to ensure smooth implementation of alternative shipping arrangements if required.
Markets will closely monitor developments in the Gulf, as any prolonged disruption at the Strait of Hormuz could have far-reaching implications not only for Pakistan but for energy-importing economies worldwide.
