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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
DawnIranian oil option returns for Pakistan ↗︎
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