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At the start of 2026 Pakistan was sitting on a surplus of imported liquefied natural gas (LNG). Three consecutive years of falling demand – from a peak of 8.2 million tonnes in 2021 to 6.1 million tonnes by late 2025 – were driven by cheap solar panels and reduced industrial activity. The government responded by quietly selling excess cargoes abroad and shutting down domestic wells to avoid over‑pressurising pipelines. Any gas that could not be diverted would have been pushed into household networks at a loss, adding billions to the sector’s crippling debt. Everything changed on 28 February when the United States and Israel launched the "Epic Fury" operation against Iran. The strikes killed Supreme Leader Ali Khamenei and targeted missile sites, air defences and military infrastructure. Iran retaliated with hundreds of missiles and drones, choking traffic through the Strait of Hormuz – a chokepoint for roughly 20 % of global oil and gas. As part of its retaliation, Iranian drones hit Qatar’s Ras Laffan Industrial City on 2 March, the world’s largest LNG export hub. Qatar, the second‑largest LNG exporter after the United States, declared force majeure and halted all production, releasing it from contractual delivery obligations. The fallout was immediate. Qatar’s forced shutdown cut its LNG output by 17 % and disrupted the supply chain that fuels Pakistan, which sources almost all of its imported gas from Qatar and the United Arab Emirates. Pakistan’s LNG arrivals plummeted from 12 shipments in January to just two in March. Monthly cargo data from the Oil and Gas Regulatory Authority (OGRA) show that the country received between eight and twelve shipments a month through 2025, but only two arrived after the conflict began. Price pressure followed. On 13 February state‑owned Pakistan State Oil and Pakistan LNG Limited bought eight cargoes at an average of $10.47 per MMBtu (totaling $257.1 million). By 12 March the two cargoes that did arrive cost $12.49 per MMBtu – a 19 % increase in just one month. Long‑term contracts have left Pakistan with little flexibility. Two government‑to‑government agreements with Qatar, spanning 15 and 10 years, commit the country to nine shipments a month. Even as domestic demand fell – LNG’s share of Asian markets dropped from ~30 % in 2020 to ~18 % in 2025 – the contracts remained binding. Solarisation has been a double‑edged sword. By 2025 Pakistan installed 34 GW of solar capacity, with about 25 GW feeding the national grid, driving an 11 % decline in overall electricity demand between 2022 and 2025. Gas‑fired power plants built for imported LNG are now under‑utilised, especially during daylight hours. Analysts warn that the surplus was predictable. “Pakistan’s energy planning has been locked into long‑term contracts with little room for adjustment,” says Haneea Isaad of the Institute for Energy Economics and Financial Analysis (IEEFA). The resulting circular debt now stands at 3.3 trillion rupees (≈ $11 billion), and the government is negotiating to off‑load 177 unwanted shipments worth $5.6 billion through 2031. With Qatar’s LNG shipments effectively halted, the country faces a potential shortfall of more than 21 % of its power generation capacity. The National Electric Power Regulatory Authority confirmed that LNG supplies are under force majeure, while coal imports from South Africa and Indonesia continue. To mitigate the gap, Pakistan is reviving domestic gas production that had been throttled during the surplus period. Roughly 350–400 million cubic feet per day of domestic gas were previously held back for LNG imports, now being released to the grid. Nevertheless, analysts caution that even with restored domestic gas, imported coal and hydropower, “the energy shortage may persist, especially during the peak summer months.” Summer pressure is already building. The State of Industry Report 2025 recorded peak electricity demand of over 33,000 MW last summer, while winter demand sits around 15,000 MW, helped by solar generation of 9,000–10,000 MW daily. Furnace oil, the primary backup fuel, now costs 35 rupees per unit (≈ $0.12), more than double since the Strait of Hormuz disruption. Consumers with grid electricity face higher bills and possible outages; industrial users reliant on gas risk production cuts; those equipped with rooftop solar and battery storage are best insulated. “Returning to the spot market is unlikely given Pakistan’s dire financial position, and competing with wealthier nations would price the country out,” Isaad warns. “The realistic outcome may be planned load‑shedding of two to three hours daily.”

Kuwait has been hit by Iranian missile and drone strikes, targeting a crucial power and desalination plant, as well as the Mina al-Ahmadi oil refinery. The attacks, which occurred on Friday, have raised concerns about the stability of the region and the potential for further escalation. The power and desalination plant was struck before midday local time, with the extent of the damage still unknown. The plant is critical for Kuwait's water supply, as the country is highly dependent on desalinated water. An Indian national was killed in a similar attack on March 30, and Iran denied claims it launched the attacks, blaming Israel instead. The Mina al-Ahmadi oil refinery, one of the largest in the Middle East, was targeted in early morning drone strikes, resulting in fires in several operational units. No employees were injured, but emergency and firefighting teams were dispatched to the scene, and environmental authorities monitored the area for air quality. The attacks are part of a broader escalation of tensions in the Gulf region, with Iran launching retaliatory strikes against US and Israeli targets. The United Arab Emirates' defence ministry reported that it had intercepted 19 ballistic missiles and 26 drones on Thursday alone, while Saudi Arabia destroyed a drone in its airspace overnight. Iran's army spokesperson warned of impending attacks on regional power plants, while US President Donald Trump warned of intensifying strikes on Iran's infrastructure. The situation remains volatile, with concerns about the potential for further attacks and the impact on regional stability.

Defense Secretary Pete Hegseth instructed Army Chief of Staff General Randy A. George to step down with immediate effect, a move announced on X by Pentagon spokesperson Sean Parnell on Thursday. The statement said George would "retire from his position" but offered no explanation, a notable omission given the ongoing US‑Israel war against Iran.The abrupt removal adds to a string of high‑profile dismissals that have occurred since Hegseth assumed office in January. CBS first reported the decision, citing a source who said Hegseth seeks a leader who will execute his and President Donald Trump's strategic vision for the Army.Appointed in 2023 under former President Joe Biden, the 61‑year‑old General George brought extensive combat experience from Iraq and Afghanistan. During his tenure he was praised for cutting redundancies and championing new technologies such as low‑cost missile‑interceptor drones and artificial‑intelligence‑driven targeting systems.According to The New York Times, the firing may be tied to a dispute over Hegseth’s decision to block the promotion of four officers from a list of 29. While most of the blocked officers were white men, the two remaining were Black and two were women, prompting senior officers to question whether racial or gender bias influenced the action. When General George sought a meeting with Hegseth to discuss the matter, the defense secretary reportedly refused.In addition to George, Hegseth dismissed two other senior officials on Thursday: General David M. Hodne, head of the Army’s Transformation and Training Command responsible for modernization efforts, and Major General William Green Jr., the Army’s chief of chaplains. The Pentagon has not formally confirmed these removals, though the Joint Chiefs of Staff issued a tribute praising George’s decades of service.The personnel shake‑up unfolds against a broader backdrop in which US and Israeli officials have framed the Iran war as a religious undertaking. The Military Religious Freedom Foundation reported receiving complaints that senior commanders described the conflict as aiming to bring about “Armageddon” or the biblical “end times.”Earlier, in October, former Army Vice Chief of Staff General James J. Mingus retired a year ahead of schedule, with no reasons disclosed, adding to speculation about internal turbulence within the Pentagon.

President Donald Trump escalated rhetoric on Thursday, stating that the United States has yet to begin a full‑scale campaign against Iran’s remaining infrastructure and hinting that bridges and electric power plants could be next targets. The comment followed the release of video showing a U.S. strike on the newly completed B1 bridge that connects Tehran to Karaj, an attack that Iran reports killed eight people and injured 95. Iranian Foreign Minister Abbas Araghchi condemned the strike on civilian infrastructure, describing it as evidence of the “defeat and moral collapse” of the aggressor. In a statement posted on X, he warned that such attacks would not force Iran to surrender. The conflict, now entering its fifth week, has begun to ripple through regional and global markets. Instability around the Strait of Hormuz—a vital conduit for oil and gas—has prompted nations to scramble for alternative shipping routes. Satellite images this week captured smoke over Iran’s Qeshm Island, underscoring the heightened risk to infrastructure near the strategic waterway. Amid stalled negotiations with Iran’s new leadership, Trump’s intensified language comes as the United Nations Security Council prepares to vote on a resolution that could authorize member states to use “defensive means” to keep the strait open. Araghchi warned that any provocative action in the Council would only worsen the situation. Iranian media have begun listing potential retaliation targets, naming major bridges in Kuwait, Saudi Arabia, the United Arab Emirates and Jordan as possible future strike points. The semi‑official Fars News Agency highlighted these crossings as vulnerable following the Karaj bridge attack. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for recent strikes on U.S.-linked industrial sites in the Gulf, including steel facilities in Abu Dhabi and aluminium plants in Bahrain. The IRGC warned that if attacks on Iranian industries continue, “the next response will be much more painful” and will focus on the occupier’s core infrastructure. Health infrastructure has also suffered. Iran’s Health Ministry reported that U.S. and Israeli raids severely damaged the Pasteur Institute of Iran, a key research center for diseases such as cholera and COVID‑19. Ministry spokesperson Hossein Kermanpour called the strike “a direct assault on international health security.” WHO Director‑General Tedros Adhanom Ghebreyesus echoed the condemnation, noting that the institute is now unable to deliver health services. The WHO has documented more than 20 attacks on Iranian healthcare facilities since the start of March. In a separate claim, Iranian officials said air defenses downed a second U.S. F‑35 fighter jet over central Iran, suggesting the pilot’s survival was unlikely. The United States has not responded to the allegation. Israel’s military reported a fresh barrage of Iranian missiles, which triggered air‑defence alerts and caused damage to homes, vehicles, and a train station in Tel Aviv. The widening hostilities, combined with threats to critical energy and health infrastructure, highlight the growing regional volatility and its potential to disrupt global markets.

Iraq is facing a balancing act as the US-Israeli war on Iran exposes deep divisions within the country. The conflict has highlighted the divisions between those who view the attacks on Iran as a means to end Tehran's longstanding influence over Iraqi politics and those who are loyal to the Islamic republic. The war has struck Iraq during a precarious power vacuum, following the stepping aside of caretaker leader Mohammed Shia al-Sudani, whose coalition won the largest share of seats in November's parliamentary elections. This power vacuum has exacerbated tensions, with factions from the Islamic Resistance in Iraq, an umbrella body of Iran-backed armed groups, vowing to drag the US into a long war of attrition. The group has claimed responsibility for numerous drone and missile attacks on targets in Iraq and neighboring countries, including the US base in Erbil and the city's international airport. In response, unclaimed airstrikes attributed to US and Israeli forces have hit positions across the country, killing several commanders and fighters. Iraqi leaders are attempting to maintain a balancing act, denouncing the killing of Iran's supreme leader Ali Khamenei while rejecting attempts by Tehran to draw Iraq into the conflict. However, this balancing act is complicated by the fact that pro-Iran groups are also members of the Popular Mobilisation Units (PMU), a sprawling institution that operates with its own agenda. The conflict has significant implications for Iraq's stability and economy, with a looming financial disaster hanging over the country due to the crisis over the strait of Hormuz and the loss of oil revenue. The US pressure and threat of sanctions have forced some members of the pro-Iran Shia alliance in Iraq's parliament to distance themselves from more militant factions. The killing of Hassan Nasrallah, the leader of Hezbollah, has also had a profound impact on the Iraqi resistance factions, which have struggled to respond effectively to the recent war. The insider close to the pro-Iran factions noted that the killing of Nasrallah has affected the Iraqi resistance factions more than the killing of Khamenei, as Nasrallah had a direct appeal to many commanders.

The United States has reaffirmed that it is still prepared to engage Tehran in diplomatic talks, despite the ongoing US‑Israel war against Iran and President Donald Trump’s renewed threats to target the country’s civilian infrastructure. State Department spokesperson Tommy Pigott told Al Jazeera that President Trump had pursued negotiations with Iran before the conflict erupted, but accused the Iranian regime of persisting in its quest for a nuclear weapon. "The president is always open to diplomacy, but he’s also clear that we will see our objectives fulfilled here," Pigott said, underscoring the administration’s dual track of diplomatic engagement and military pressure. In a primetime address aired on Wednesday, Trump echoed his earlier claims that the United States is winning the war, yet offered no concrete roadmap for ending the hostilities or reopening the Strait of Hormuz – a chokepoint whose closure by Tehran has driven global energy prices higher. The conflict began on February 28, shortly after a round of Geneva talks that Omani mediators and Iranian officials described as “positive.” Last year, Israel struck Iran’s three primary nuclear facilities in an operation the White House dubbed “Midnight Hammer.” Iran continues to deny any intention to develop a nuclear weapon, while Israel is widely believed to possess an undeclared nuclear arsenal. Former intelligence chief Tulsi Gabbard testified to Congress that Iran was not rebuilding enrichment capacity before the June 2025 attacks, and later reiterated that there have been no efforts to restore its nuclear program since the strikes. Nevertheless, Tehran insists on the right to enrich uranium domestically and has ruled out negotiations over its missile program and support for groups such as Hezbollah and Hamas. Pigott emphasized that the United States is maintaining high‑level diplomatic contacts across the region, stating, "We see diplomatic engagement at the highest levels of this administration, with our partners in the region, to pursue our interests and explore what can happen here." The spokesperson also accused Iran of targeting civilians and civilian infrastructure, describing the threat of a nuclear‑armed Tehran as "intolerable." In response, Iran has launched missile and drone attacks against U.S. and Israeli assets, as well as energy facilities, hotels, and airports throughout the Middle East. Trump later posted footage of a U.S. strike on a major Iranian bridge, warning that similar attacks could follow. He wrote on social media, "IT IS TIME FOR IRAN TO MAKE A DEAL BEFORE IT IS TOO LATE, and there is nothing left of what could become a great country." In the same speech, he threatened to destroy Iran’s power plants and, earlier in the week, suggested the United States could also target water desalination stations – actions that legal experts say would constitute collective punishment under international law. Barbara Slavin, a distinguished fellow at the Stimson Center, told Al Jazeera that Trump appears to be "scrambling" to intensify the war in hopes of forcing a resolution before the conflict turns into a definitive failure.

The Gulf Cooperation Council (GCC) Secretary-General, Jassim al-Budaiwi, has urged the United Nations Security Council (UNSC) to take immediate action to stop Iranian attacks on Gulf countries, which he described as a 'flagrant violation' of international law and the UN Charter.Speaking at the UNSC, al-Budaiwi called on the council to 'take all necessary measures' to bring an end to Iran's attacks on Gulf countries and to protect maritime corridors and guarantee uninterrupted maritime navigation through strategic waterways in the region.The GCC chief also emphasized the need for the six GCC states – Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, and the United Arab Emirates – to be included in any talks or deals with Iran 'to enhance regional security and prevent further escalation or repetition of such attacks in the future.'Iran has been carrying out daily missile and drone attacks across the Middle East, including in Arab Gulf nations, since the US and Israel launched a war against the country on February 28. These attacks have struck civilian sites, including critical energy facilities, and have effectively closed the Strait of Hormuz, a key Gulf waterway through which about one-fifth of the world's oil and liquified natural gas supplies transit.The situation has sent global energy prices skyrocketing, and frustrations are growing across the Gulf as the US-Israeli war on Iran drags on. According to Al Jazeera's Zein Basravi, 85 percent of the projectiles fired by Iran have targeted Gulf countries, with the UAE being the hardest hit.

Iran launched a new barrage of missiles at Israel following President Donald Trump’s televised claim that Washington had "destroyed the Iranian military" and was on the brink of completing its war objectives. Trump’s address, delivered hours after he asserted that Tehran had requested a ceasefire—a claim Tehran promptly denied—also featured a pledge to "finish the job" and a statement that the core strategic goals of the United States were "nearing completion." Iranian President Masoud Pezeshkian emphasized that Iran holds no hostility toward the peoples of the United States, Europe or neighboring states, while urging the American public to question the motives behind the continued conflict. In Tehran, the war has intensified: US‑Israeli air campaigns continue to cause casualties and infrastructure damage, and Iranian forces persist with missile and drone counter‑attacks. Foreign Minister Abbas Araghchi warned that, despite receiving messages from Washington, "trust remains at zero" for any negotiation. Senior political figure Kamal Kharazi, a former foreign minister, was seriously wounded when a strike hit his home in Tehran, killing his wife. Kharazi had been involved in back‑channel talks through Pakistan aimed at reviving negotiations. In the Gulf, the United Arab Emirates reported intercepting incoming Iranian missiles and drones, and a tanker off Doha sustained damage from a projectile, though no casualties were reported. President Trump publicly thanked Gulf allies, pledging that the United States would not allow them to be harmed. Within the United States, analysts such as Trita Parsi of the Quincy Institute noted that Trump’s speech offered little new information, essentially summarising recent tweets and suggesting a lack of a clear operational plan. Israel’s military confirmed that its air‑defence systems were actively intercepting Iranian missiles, but the attack wounded 14 civilians, including an 11‑year‑old girl, near Tel Aviv. Israeli officials said the timeline outlined by Trump aligns with Prime Minister Benjamin Netanyahu’s assessment of the campaign. Regional spill‑over continued: an Israeli strike on Beirut killed a senior Hezbollah commander and at least seven civilians, while an air strike on Iraq’s Anbar province killed seven fighters and injured 13 at a military healthcare clinic. On the economic front, the World Bank expressed "extreme concern" about the conflict’s impact on inflation, employment and food security, and is consulting member states on emergency measures. Despite the turmoil, global equity markets rallied and oil prices fell after Trump’s optimistic remarks, indicating short‑term investor relief.

Central Israel was struck by one of Iran’s most extensive missile barrages in recent weeks, underscoring a rapid escalation in regional tensions.