Pakistani Prime Minister Shehbaz Sharif offered Tuesday to mediate between the United States and Iran amid escalating tensions over recent disruptions to shipping in the Strait of Hormuz, calling for immediate diplomatic engagement to prevent further regional instability.

The offer comes as oil prices have risen sharply following attacks on commercial vessels in the strategic waterway, through which approximately 20% of global oil supplies pass daily. Brent crude futures climbed 3.2% to $87.45 per barrel on Tuesday, while West Texas Intermediate gained 2.8% to reach $82.11.

“Pakistan stands ready to facilitate dialogue between all parties to ensure peace and stability in this vital region,” Sharif said during a press conference in Islamabad. “The disruption of global energy supplies affects not just regional economies, but the entire world.”

The Pakistani leader’s intervention reflects growing international concern over the potential for broader conflict as tensions between Washington and Tehran have intensified following a series of maritime incidents in recent weeks. While neither government has formally requested Pakistani mediation, diplomatic sources suggest informal contacts have been ongoing.

General Asim Munir, Pakistan’s Chief of Army Staff, has reportedly been in communication with military counterparts in the region about maintaining stability, according to a Pakistani defense official who spoke on condition of anonymity.

The current crisis began escalating last month when Iran’s Islamic Revolutionary Guard Corps increased patrols in the Strait of Hormuz following renewed U.S. sanctions enforcement. Commercial shipping companies have reported at least six incidents involving Iranian forces boarding or redirecting vessels, though no casualties have been reported.

U.S. Central Command confirmed that American naval forces have increased their presence in the region but declined to provide specific details about force positioning. “We remain committed to ensuring freedom of navigation in international waters,” said Pentagon spokesperson Colonel Sarah Williams.

Iran’s Foreign Ministry has defended its actions as legitimate enforcement of maritime law, with spokesman Nasser Kanaani stating Monday that Tehran “reserves the right to inspect vessels in its territorial waters and exclusive economic zone.”

The shipping disruptions have prompted several major oil companies to temporarily reroute tankers around the Cape of Good Hope, adding approximately two weeks to journey times between Gulf producers and European markets. Lloyd’s of London reported that war risk insurance premiums for Gulf routes have increased by 150% since the incidents began.

Saudi Arabia and the UAE, while not directly involved in the current tensions, have called for de-escalation. Saudi Energy Minister Prince Abdulaziz bin Salman said Tuesday that the Kingdom is prepared to increase production if needed to offset any supply disruptions, though he emphasized that current spare capacity remains limited.

The International Energy Agency warned in its latest monthly report that prolonged disruptions in the Strait of Hormuz could trigger significant price volatility. “Even temporary closures of this critical chokepoint would have immediate global implications,” the agency stated.

Pakistan’s mediation offer builds on its historical role as a bridge between regional powers. The country maintains diplomatic relations with both Washington and Tehran, despite its alliance with the United States and participation in counter-terrorism operations.

“Pakistan has unique relationships across the region that position it well to facilitate dialogue,” said Dr. Marvin Weinbaum, director of the Afghanistan and Pakistan Studies program at the Middle East Institute in Washington. “However, the complexity of U.S.-Iran relations extends far beyond maritime issues.”

European allies have welcomed Pakistan’s diplomatic initiative. German Foreign Minister Annalena Baerbock told reporters in Berlin that “any credible effort to reduce tensions through diplomatic channels deserves international support.”

The economic implications extend beyond energy markets. The Dubai International Financial Centre reported that regional stock markets have declined by an average of 8% since the maritime incidents began, with transportation and logistics companies particularly affected.

Shipping industry analysts estimate that current disruptions are adding approximately $2-3 billion in additional costs weekly through longer routes, higher insurance premiums, and delayed deliveries. The Baltic Dry Index, which measures shipping rates for commodities, has risen 15% in the past three weeks.

Regional governments are also preparing contingency plans. The UAE has accelerated development of alternative pipeline routes, while Kuwait announced Tuesday it was reviewing strategic petroleum reserve policies.

As diplomatic efforts continue, military analysts note that the situation remains volatile. “The concentration of naval forces in a relatively small area increases the risk of miscalculation,” said retired Admiral James Foggo, former commander of U.S. Naval Forces Europe.

Pakistan’s Foreign Ministry indicated that preliminary discussions about potential mediation frameworks are ongoing, though no formal timeline has been established. Both Washington and Tehran have yet to respond publicly to Sharif’s offer.

The situation underscores the fragility of global energy supply chains and the continued importance of Middle Eastern stability for international economic security.