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Pakistan·Iran·Trade & Economy·Energy·Sanctions

Pakistan reassesses Iranian crude oil imports after temporary US sanctions relief

Friday, 26 June 2026, 06:27 · 1 min read

Pakistan is weighing a return to Iranian crude oil imports following a temporary easing of US sanctions on Tehran, reviving the prospect of discounted energy supplies that were cut off years ago. Pakistan Refinery Ltd had previously imported Iranian crude under a long-term contract with the National Iranian Oil Company before halting purchases once sanctions took effect. Industry experts caution that commercial hurdles persist — notably that Iranian crude yields high volumes of furnace oil, for which domestic demand is negligible — though analysts at Topline Securities estimate that sourcing 10–20% of Pakistan's petroleum needs from Iran could generate import savings of $170–340 million annually. Pakistani refineries currently lack the deep-conversion hydrocracker units common in Indian facilities that allow heavier crude grades to be efficiently processed into higher-value fuels such as diesel and petrol, meaning the opportunity's scale will depend heavily on pricing discounts and progress on planned refinery upgrade projects.

Sources
Dawn — Iranian oil option returns for Pakistan ↗︎
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