Iran's war has cut fuel smuggling to Pakistan’s Balochistan by half, raising prices and triggering fuel rationing and shortages worldwide.

The Iran war has disrupted fuel smuggling from Iran to Pakistan’s Balochistan province, cutting supplies by nearly half and driving up prices. Smugglers now pay 190 rupees per litre, up from 150, slashing profits and making sales difficult. Reduced cross-border flows have strained an informal economy where many rely on smuggling for income, earning just 2,000 to 3,000 rupees daily. Pakistan has imposed fuel rationing, including shorter workweeks and school closures, and canceled military parades to conserve fuel. The crisis is hitting Balochistan—the country’s poorest and largest province—hardest, where limited jobs have pushed people into smuggling. Global fuel markets are also affected, with price spikes and shortages in countries like the U.S. and Australia due to supply disruptions and panic buying.