Farhan Qureshi 
Iranian Foreign Minister Abbas Araghchi has proposed the Iran seven-day Hormuz plan to restore normal sea traffic in the Strait of Hormuz, offering a diplomatic solution to the current tensions with the United States. The idea was transmitted to Washington through intermediaries and links the reopening of the strategic waterway to concrete steps by the United States.
Under the plan, the United States would lift its naval blockade, waive sanctions on Iranian oil sales and abide by a ceasefire that includes Lebanon. Iranian officials called the proposal a concrete roadmap, with the possibility of the Strait reopening on the sixth day and the start of wider negotiations on the seventh.
Tehran Ties Hormuz Opening To Broader Diplomatic Moves
The seven-day clock would start once Washington accepts the proposal, Araghchi said. Iranian officials said the first four to five days would be devoted to the necessary measures, after which maritime passage would be restored, and negotiations on mutually agreed issues would start.
The proposal comes after weeks of diplomatic activity involving regional intermediaries and follows an earlier memorandum of understanding. Iran has said that the re-opening of the waterway is linked to lifting of military and economic pressure. The United States has kept questioning Tehran’s readiness to commit to commitments that are implementable.
Pakistan’s Energy Crisis Has Direct Implications For Hormuz Crisis
The Strait of Hormuz is especially important for Pakistan given its reliance on imported LNG from Gulf suppliers. Qatar and the United Arab Emirates together account for about 99 per cent of Pakistan’s LNG supply, according to a recent Gastech assessment, while LNG accounts for about 30 per cent of total gas supply.
The disruption has already impacted Pakistan’s energy system. Pakistan’s power minister said the situation in Hormuz has affected gas supplies and that gas-fired power plants with a capacity of around 5,000 megawatts were important during night-time peak demand. The government has been working to secure alternative generation and ensure that Qatari gas can reach domestic consumers.
Pakistan’s Access To Qatari LNG Is Crucial
The importance of access to Qatari LNG has already been proven during the crisis in Pakistan. It is the first shipment from Qatar to Pakistan via the waterway since July. A Qatari LNG cargo of around 82,000 tonnes reached Port Qasim in September after transiting the Strait of Hormuz. The cargo was expected to provide temporary relief to the power sector. However, the Oil and Gas Regulatory Authority adjusted prices for regasified LNG in September after two cheaper Qatari cargoes arrived, showing the direct connection between Gulf shipping conditions and domestic fuel costs.
Diplomatic engagement has also been underway with Pakistan as tensions around Hormuz and the wider region have ramped up. Prime Minister Shehbaz Sharif also held talks with Iranian President Masoud Pezeshkian and stressed the importance of regional peace and coordinated diplomatic efforts to reduce tensions. Pezeshkian has also reiterated Iran’s acceptance of the Islamabad Memorandum of Understanding as a basis for continued engagement.
Pakistan’s geographical location and relationships with countries across the region give Islamabad a direct stake in reducing tensions around major maritime corridors. The government has repeatedly said that the Strait of Hormuz and Bab al-Mandeb are vital arteries of global trade and energy security and must remain open to international shipping.
Stability In Hormuz Could Contribute To Pakistan’s Economic Resilience
Beyond the immediate availability of LNG is the economic importance of reopening Hormuz. Energy prices have a knock-on effect on transport, electricity generation, manufacturing, fertiliser production and household costs, so a prolonged disruption can have a ripple effect through several parts of the Pakistani economy.
But recent assessments have indicated that Pakistan has developed stronger buffers to external shocks. In September, a Moody’s analyst said Pakistan’s economy was more resilient to the Hormuz shock than the 2022 oil crisis due to improved macroeconomic stability, lower inflation, a more stable exchange rate and stronger foreign exchange reserves.
Seven Day Proposal May Impact Regional Energy Planning
The wider energy market is already responding to the disruption around Hormuz. Disruptions to Gulf shipments are prompting LNG buyers and sellers to push for greater supply diversity, with importers eyeing supplies from North America, Australia, Indonesia and West Africa, Reuters reported.
For Pakistan, the crisis has underlined the need to complement sound Gulf contracts with wider energy diversification. A reopening of Hormuz would restore an important supply route, but longer-term resilience could also involve greater renewable generation, improved storage capacity, domestic gas management and more flexible LNG procurement.
Trade, Maritime Security Would Benefit From Reopening Hormuz
The seven-day proposal is critical to much more than oil and gas. Lower vessel movements at a key maritime choke point, the Strait of Hormuz, have affected commercial shipping well beyond energy cargoes. Reuters said only two commodity vessels transited the strait on Sept. 21, compared with about 125 large commercial vessels a day before the conflict.
Pakistan’s economy is dependent on reliable maritime connectivity for its imports, exports and industrial supply chains. So, improved passage through Hormuz could help reduce shipping uncertainty and support more stable commercial planning throughout the region.
Pakistan Can Use Crisis To Strengthen Energy Security
The proposed reopening provides Pakistan with an opportunity to tackle both immediate supply issues and longer-term vulnerabilities. Reliable access to LNG would help to stabilise power generation and industry. Further energy diversification could provide further protection against future disruptions
The crisis has already shown the importance of reliable supply contracts and flexible purchasing. Pakistan can learn a thing or two from that book by increasing its renewable capacity, improving its transmission and storage infrastructure, strengthening its strategic planning and maintaining diversified sources of imported energy.
