Prime Minister Shehbaz Sharif is expected to take the nation into confidence shortly on the overall situation amid the prevailing Middle East crisis, following attacks by the the United States and Israel on Iran.

Tensions in the Middle East surged last week after US and Israeli air strikes killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, along with several senior officials, sparking retaliatory attacks from Tehran and broadening the regional conflict. In response, Iran targeted US military bases across multiple Gulf countries, significantly escalating the confrontation.

Iran has also closed the Strait of Hormuz following airstrikes by the US and Israel, halting the movement of oil supplies to many countries. As a result, crude oil prices on Friday recorded their strongest weekly gain since the extreme volatility during the COVID-19 pandemic in spring 2020, as shipping and energy exports through the key waterway were disrupted.

A day earlier, PM Shehbaz reviewed multiple proposals and recommendations for implementing austerity and prudent spending. He underscored the importance of timely implementation of measures to protect the national economy.

“The government is closely monitoring the situation and will take all necessary decisions to ensure economic stability,” he had said, pledging that all possible steps would be taken to protect public interests during this challenging period.

He had emphasised prudent management of national resources and assured that once the situation improves, the government would provide greater relief to the public. The statement clarified that austerity measures would not affect industrial or agricultural sectors, ensuring production, exports, and food security remain intact.

“Everyone should bear the burden of savings and austerity fairly. The privileged segments of society and elite classes should set an example in making the necessary adjustments,” the premier had said.

The government sharply increased diesel and petrol prices by Rs55 per litre, or 20% on Friday — marking the first in a series of similar surges expected in the coming days due to the ongoing conflict.

The increase in petrol prices was more than the surge in international markets, as the government chose to collect more money than required from motorcyclists and car owners to subsidise the use of diesel, mostly by the public transport and agriculture sectors.

Read More: Govt drops ‘fuel bomb’

The sharp increase has intensified the cost of living, with residents reporting higher transport fares and rising prices of daily-use items.

People also reported disputes at petrol pumps, where attendants were refusing to dispense fuel worth less than one litre. According to residents, many customers asked for petrol worth Rs150 or Rs200, but pump staff declined, saying the nozzle rate is fixed and fuel is either dispensed in smaller or larger quantities, leading to frequent arguments.

The rise in petrol prices also pushed up the cost of fruits, vegetables and other daily necessities. Shopkeepers said the transport cost of bringing fruits, vegetables and goods had previously been around Rs1,000 per trip but had now increased to between Rs2,500 and Rs3,000.

Drivers providing pick-and-drop services for schoolchildren have also raised their fares, with residents saying the entire burden has shifted to the public.