Pakistan Pushes US-Iran Peace Talks as Hormuz Handles 20% of Global Oil, LNG Shipments
Updated
Updated · Reuters · May 22
Pakistan Pushes US-Iran Peace Talks as Hormuz Handles 20% of Global Oil, LNG Shipments
10 articles · Updated · Reuters · May 22
Syed Mohsin Naqvi met Iranian Foreign Minister Abbas Araqchi again in Tehran, two days after delivering the latest U.S. message, as Pakistan tried to broker a framework to end the war.
Two disputes still block a deal: Iran's near-weapons-grade uranium stockpile and its push to control or charge tolls in the Strait of Hormuz, which Washington says would make any settlement unworkable.
Donald Trump said the U.S. would eventually seize and likely destroy Iran's enriched uranium, while Iranian sources said Supreme Leader Ayatollah Mojtaba Khamenei had ordered that the stockpile not be sent abroad.
Oil prices rose and the dollar hovered near a six-week high as investors doubted a breakthrough; traffic through Hormuz has fallen to a trickle from 125-140 daily passages before the war.
The International Energy Agency called the conflict the world's worst energy shock and warned summer demand could push markets into a "red zone" in July and August.
As global fuel markets face a 'red zone,' how long can the world economy withstand the Hormuz blockade?
Can Pakistan's diplomacy break the US-Iran deadlock, or is a wider conflict over the Strait of Hormuz now inevitable?
With Iran's uranium nearing weapons-grade, what is the final red line before a potential military intervention?
Global Economic Shockwaves from the 2026 Strait of Hormuz Crisis: Energy Chokepoint, US-Iran Tensions, and Pakistan’s Mediation
Overview
The ongoing crisis at the Strait of Hormuz began after US-Israeli strikes on Iran in February 2026, prompting Iran to close this vital shipping lane in retaliation. In response, the US military, led by CENTCOM and the USS Abraham Lincoln strike group, enforced a blockade against Iranian ports, escalating tensions and turning the Strait into a major bottleneck for global energy flows. This standoff has disrupted oil and gas shipments, driven up prices, and triggered worldwide economic concerns. Diplomatic efforts remain tense, with filtered US statements aiming to influence global oil prices and international skepticism about military solutions.