Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister of Information Technology, has expressed grave concern over the escalating US-Israel-Iran war, warning that the disruption of the global energy supply chain is pushing the world toward a historic economic meltdown.
In a statement issued today, he noted that the 2026 Iran War, which commenced on February 28, has fundamentally altered the geopolitical landscape, leaving Pakistan and other energy-dependent nations highly vulnerable. He emphasised that the closure of the Strait of Hormuz on March 4 has paralysed nearly 20 per cent of the world’s oil and liquefied natural gas (LNG) trade, describing it as the most severe supply disruption since the 1970s.
Mian Zahid Hussain pointed out that Brent crude oil prices, which surged past $120 per barrel earlier this month, remain highly volatile despite a slight easing to $103 per barrel following President Trump’s recent diplomatic manoeuvres.
He remarked that the ongoing blockade of the Strait has forced regional giants like Saudi Arabia, Kuwait, and the UAE to cut production by over 10 million barrels per day, creating a “greatest global energy and food security challenge” as declared by the International Energy Agency. He warned that if the conflict persists, Qatar and Kuwait could see a GDP contraction of up to 14 per cent, which would directly impact millions of Pakistani expatriates and the $21 billion in annual remittances from the GCC, which largely support Pakistan’s current account deficit.
Regarding the latest diplomatic developments, Mian Zahid Hussain observed that President Trump’s announcement of “productive talks” and the five-day postponement of strikes on Iranian power plants have provided a temporary breather to global markets. However, he cautioned that the situation remains fragile as Tehran continues to deny formal negotiations while demanding compensation for civilian infrastructure damage.
He noted that the threat of sea mines in the Persian Gulf, QatarEnergy’s declaration of force majeure, and insurance and freight charges have already driven up fertiliser prices by 40 per cent and gas benchmarks by 55 per cent, threatening global agricultural output and food security.
Analysing the impact on the domestic front, Mian Zahid Hussain stated that Pakistan is facing an “overnight surge” in fuel and grocery prices, prompting the implementation of emergency measures, including a four-day workweek and school closures, to conserve energy.
He stressed that the disruption of 30 per cent of global fertiliser exports through the Gulf is particularly lethal for Pakistan’s agrarian economy. He urged the government to diversify energy sources and strengthen diplomatic efforts to ensure the safety of Pakistani workers in the Gulf, who are currently facing an “end of the narrative” regarding the region’s status as a haven for global talent.
