As the conflict between Israel and Iran escalates in the Middle East, Pakistan is exploring the possibility of using pipelines to import oil from Saudi Arabia and the United Arab Emirates (UAE) if Iran blocks the Strait of Hormuz. 

Earlier this week, local media reported that Pakistan could use the existing pipeline network in the UAE and Saudi Arabia to bypass the Strait of Hormuz, which handles the transit of about 20% of global crude oil. 

Pakistan could use Saudi Arabia’s East-West  Crude Oil Pipeline (Petroline), which transports crude oil from the country’s eastern provinces to the Red Sea port of Yanbu, and the UAE’s Abu Dhabi Crude Oil Pipeline (Adcop), bypassing the Strait of Hormuz.

The two pipelines could provide a strategic route for oil exports if the ongoing conflict escalates into a broader war, in which Iran blocks the world’s busiest shipping route, disrupting shipping and oil supplies. 

Despite the growing concerns of a potential blockade in the Straight of Hormuz, Pakistani officials noted that there was no immediate threat of higher oil prices for the country. They revealed that they were actively negotiating with other global suppliers to ensure stable oil prices and steady deliveries. 

Pakistan is also exploring storing more oil in abandoned power plants, which can store up to a million barrels in their furnace oil storage facility, with a proposal to purchase more storage facilities planned for scrap sales by power companies on the table. 

Meanwhile, Pakistan Prime Minister Shehbaz Sharif has set up a high-level committee, led by Finance Minister Aurangzeb, to track the ongoing developments in the Israel-Iran conflict and its impact on the global oil market.