Pakistan secures Hormuz passage deal with Iran amid regional conflict

Pakistan and Iran have reached an agreement allowing a limited number of Pakistani-flagged vessels to transit the Strait of Hormuz, offering some relief to Islamabad as it grapples with a deepening energy crisis.

Under the deal, finalised on 28 March, 20 Pakistani-flagged ships will be permitted to pass through the strategic waterway, with two vessels crossing daily, says Al Jazeera.

"I am pleased to share great news that the Government of Iran has agreed to allow 20 more ships under the Pakistani flag to pass through the Strait of Hormuz; two ships will cross the Strait daily. This is a welcome and constructive gesture by Iran and deserves appreciation," Pakistan's Foreign Minister Ishaq Dar said.

The agreement comes during an ongoing conflict between the US and Israel on one side and Iran on the other, which began on 28 February following coordinated strikes that killed Iran's Supreme Leader Ali Khamenei.

The war has severely disrupted global shipping through the Strait of Hormuz, a critical artery for energy supplies. Maritime traffic has fallen by about 90%, contributing to a sharp rise in oil prices, which have climbed more than 40% to above $100 per barrel.

"The Strait of Hormuz is not an oil chokepoint. It is the aortic valve of globalised production – and like any valve, when it fails, the entire circulatory system collapses," said Mohammed Al-Hashemi, a former Qatari minister.

Global trade is experiencing its "worst disruptions in the past 80 years," said Ngozi Okonjo-Iweala, head of the World Trade Organization.

Iran has tightened its control over the strait, with the Islamic Revolutionary Guard Corps introducing a checkpoint system requiring vessels to submit cargo and crew details for clearance and to receive escorts. Tehran is also pursuing formal recognition of its authority over the waterway, while its parliament is drafting legislation to formalise toll collections. Some ships have reportedly paid millions of dollars for safe passage.

The conflict has spread across the region, with casualties reported in Iran and Lebanon, and Yemen's Houthis launching missile attacks on Israel. Iran has also issued threats targeting US-Israeli-linked institutions in the region.

Despite a recent five-day easing of US strikes on Iranian power infrastructure, Israel has said it will continue its military operations. "We must finish the job," Reza Pahlavi said while speaking to a pro-Trump crowd at CPAC.

The diplomatic effort behind the shipping deal included engagement between Pakistan's leadership and international counterparts, including talks involving Army Chief Field Marshal Asim Munir and US President Donald Trump.

"Excuse me, I'm so sorry. Such a terrible mistake," Trump said, after accidentally referring to the waterway as the "Strait of Trump" in remarks related to the crisis.

Pakistan has signalled willingness to support broader de-escalation efforts. "If the parties desire, Islamabad is always willing to host talks," said Tahir Andrabi, a spokesperson for Pakistan's Ministry of Foreign Affairs.

Dar described the agreement as a "harbinger of peace" and a "welcome and constructive gesture."

Regional officials have warned of wider economic consequences from the disruption.

The chokehold on the strait is "economic terrorism," and "every nation pays the ransom at the gas pump, at the grocery store, at the pharmacy," said Sultan Al Jaber, an Emirati minister.

Other countries, including Malaysia, have also secured arrangements with Iran to allow their vessels to pass through the strait.