Iranian oil smuggling surges again

Amid the US-Iran war, smuggled petroleum products from Iran have started flooding Pakistan's markets, stoking fears among local oil refineries. For the past more than two months, Iran has closed the Strait of Hormuz, a key shipping channel from where most of the global oil supplies pass. Owing to this situation, oil prices have jumped significantly across the world and even Pakistan is not insulated from its repercussions. Pakistan's weekly oil import bill has swelled from $300 million to $800 million, constraining the overall economy. In the face of persistent uncertainty, the smuggling of petroleum products from Iran has surged to high levels, which are a direct threat to the local oil industry.