PAKISTAN PERSPECTIVE

Islamabad, July 28, 2026. For Pakistan, the pause observed over the past two nights between Washington and Tehran is far more than a distant truce—it registers directly in market prices and inflation statistics. According to Geo News, the interim agreement known as the "Islamabad Memorandum," negotiated by Pakistan itself to suspend hostilities and reopen the Strait of Hormuz, had allowed national inflation to fall to 11.1 percent year-over-year by late June, down from a peak of 11.7 percent in May—a shock driven by a 36.8 percent surge in transportation costs tied to the conflict. The country had even recorded a slight monthly deflation of 0.3 percent. With the resumption of hostilities followed by this new pause, that reprieve remains fragile: the barrel, which climbed above 100 dollars last week according to AFP as cited by ARY News, retreated again on Monday, buoyed by hopes of a return to the ceasefire and negotiations over reopening the Strait of Hormuz.

On the diplomatic front, Pakistani media relay statements from Iranian military spokesman Mohammad Akraminia, cited by Dawn and ARY News: "These attacks continued until two nights ago, but since then, the Americans have stopped their strikes." He clarifies that Tehran, whose strategy "is essentially retaliation," has therefore suspended its own operations. The Express Tribune reports, citing Reuters, that Iran's position remains conditional: "attack for attack"—if Washington halts, Tehran halts too.

Another element closely tracked in Islamabad: according to ARY News, a report points to Pakistan seeking to restart US-Iranian talks within the framework of an initiative "driven by China." This mediator role, inherited from the Islamabad Memorandum, places the country in an unusual position—both exposed to oil price spikes and a claimed actor in de-escalation. Local media also note that the American pause owes less to a gesture of goodwill than to depleted stocks of munitions and Patriot interceptors, according to sources cited by Dawn and The Express Tribune, while Donald Trump continues to invoke the possibility of strikes "at a much higher level."