Arab Light gained more than 21.3% during Jun’25 and 11% since June 13, 2025 due to escalating geopolitical tensions in the Middle East.
The movement of large volumes of oil and the limited availability of alternative routes make Strait of Hormuz one of the world’s most important oil chokepoints.
Pakistan sources most of its petroleum and gas imports from the Middle East, which pass through the Strait of Hormuz, making this route critical to the country’s energy supplies.
Given that Pakistan’s oil imports constitute a small portion of the region’s total exports, the availability of alternative routes and a diversified local energy mix should help ensure supply stability, in our view.