Pakistan proves its utility as a US-Iran mediator

Pakistan's foreign minister said his country was "endeavouring to convert this ceasefire into a permanent end to this war". Pakistan's influence in steering the talks was reflected earlier this month when Islamabad helped to secure the release of 22 crew members from the Iranian container ship, the Touska, after US forces detained them and seized their ship in the Gulf of Oman on 20 April. A US military spokesman confirmed the crew had been handed over to the Pakistani authorities and would then be returned to Iran.

Pakistan's emergence as a key facilitator in efforts to end the Iran conflict and reopen the vital Strait of Hormuz waterway to commercial traffic certainly stands in stark contrast to its relations with Trump during his first term as president, when he accused Islamabad of indulging in "lies and deceit".

Changed relationship

Today, relations have improved to the extent that Pakistan finds itself playing a key, high-profile role it last fulfilled in the 1970s, when it served as a bridge between East and West, facilitating rapprochement between the United States and China.

Pakistan has received many plaudits for its role in arranging the first direct talks between the US and Tehran since the country's 1979 Islamic revolution. The improvement in ties between Washington and Islamabad that has enabled Pakistan to fulfil this high-profile role can be traced back to the arrest and transfer last year of Mohammad Sharifullah, who was accused of planning the deadly August 2021 bombing at Kabul airport as US forces undertook their chaotic withdrawal from Afghanistan. The White House proclaimed Sharifullah's detention by the US authorities as evidence of Trump's "strong leadership on the world stage."

Relations between the two countries improved further after Trump's involvement in helping to defuse tensions between Pakistan and India following military clashes between the two countries in May 2025. A month later, Trump hosted Pakistan's military chief, Field Marshal Asim Munir, to lunch at the White House.

Economic drivers

Pakistan also has important reasons of its own for wanting to bring hostilities in the Gulf to an end, not least the potentially grave impact the conflict could have on its economy. The Strait of Hormuz represents a vital lifeline for the Pakistani economy, which imports nearly 90% of its crude oil from Saudi Arabia and the United Arab Emirates and almost 99% of its liquified natural gas (LNG) from Qatar. While Islamabad has managed to maintain oil supplies despite the closure, it has done so by paying significantly high prices.

The crisis could also have a disastrous impact on the country's rural economy, with around 40% of the population relying on agriculture for their livelihood. The closure of the Strait has resulted in a 50% rise in the cost of urea, the fertiliser used by most farmers. The continuation of the Gulf crisis could reduce many of them to penury.

There are also concerns that the crisis could lead to a significant reduction in remittances from Pakistani workers employed in Gulf states, a critical pillar of the country's economy. So while Pakistan has much to gain from its increased diplomatic standing resulting from its mediation efforts between the US and Iran, its efforts are also vital to preventing the country from suffering an economic disaster if the Gulf crisis continues much longer.