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Oil tankers navigating the Strait of Hormuz amid rising geopolitical tensions and insurance risk.

Energy & Environment

The Strait of Hormuz Is Not Closed. It Is Becoming Uninsurable.

If the Strait of Hormuz becomes uninsurable, Pakistan’s oil bill, inflation and remittances face pressure. Here’s the real risk and rational response.


The Remittance Question

Millions of Pakistanis work in Saudi Arabia and the UAE. If Gulf economies slow due to aviation disruption, construction slowdown, or capital outflows, remittances could soften.

However, in the short term, high oil prices actually strengthen Gulf fiscal balances. That stabilizes host economies. Immediate remittance collapse is improbable unless conflict becomes prolonged and regionally destabilizing.

Markets price fear quickly. They do not always price duration accurately.

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