# Why Islamabad Is Working So Hard to Broker Peace Between Iran and the US, and What It Stands to Gain

> Pakistan has positioned itself as a key mediator in talks between Iran and the United States, but behind that energetic push lie several strategic interests, from border security to economic gain.

**Type:** article · **Category:** Pakistan · **Published:** 2026-06-24 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/pakistan/madhyastha-ki-kursi-para-baithakara-vaishvika-rasukha-ki-talasha-men-juta-islamabad-hara-danva-ke-pichhe-chhipa-hai-bara-hita-2719 · **Language:** English
**Tags:** Iran US deal, Pakistan mediation, Islamabad Memorandum, Shehbaz Sharif, Asim Munir, Balochistan, Strait of Hormuz, Middle East tensions

Amid the long running tensions in the Middle East, Pakistan has cast itself as a major mediator in bringing Iran and the United States to the negotiating table. Over the past few months, Islamabad has done more than just carry messages between the two countries; it has hosted talks and worked to create the right atmosphere for an agreement. In fact, the interim deal between the US and Iran was named the ‘Islamabad Memorandum of Understanding’, with Pakistan mentioned as both a mediator and a witness.

Pakistan's role has drawn praise around the world. From New Zealand and Australia to France and Norway, and from Malaysia all the way to the United States, the media and leadership of many countries have lauded it. Alongside Pakistan's active part, countries such as Egypt and Turkey also played important roles. That raises an obvious question: what does Pakistan actually get out of this, and why is it showing so much enthusiasm for the job?

Notably, US President Donald Trump has already called Pakistan's army chief, Field Marshal Asim Munir, his favourite field marshal. Pakistan's Prime Minister Shehbaz Sharif was personally present in Switzerland during the talks between Iran and the US. Foreign Minister Ishaq Dar, meanwhile, stayed in constant touch with neighbouring Gulf states even as the conflict raged.

## A Push for Global Credibility
Pakistan has long been wrestling with economic crisis, political instability and security challenges. At such a moment, if it proves to be a successful bridge between bitter rivals like the US and Iran, its image on the world stage could grow stronger. Islamabad wants to boost its standing internationally. Analysts believe it is trying to present itself not as a country confined to South Asia, but as a responsible regional power. That is why it has tried to balance ties between the US, Iran, the Gulf states and China.

## Worries Over Balochistan and the Border
Pakistan and Iran share a border roughly 900 kilometres long. The border regions of both countries already face problems like Baloch militancy and smuggling. If instability rises in Iran or its central government weakens, it could directly affect Pakistan's restive Balochistan province. That is why Pakistan does not want Iran tangled in any large war or thrown into chaos.

## Oil Prices and the Energy Equation
Pakistan is a country dependent on energy imports. An escalating war in the Middle East could send oil prices climbing sharply, and that hits Pakistan's economy directly. During the Iran-US tensions, a crisis erupted in the Strait of Hormuz. A large share of the world's oil trade passes through this route. If it were to close, the energy supply of many countries, including Pakistan, could be disrupted. This is why Pakistan wants stability in the region.

## A Chance to Repair Ties With Washington
After the American withdrawal from Afghanistan, Pakistan's strategic importance had faded somewhat. By playing the role of facilitating dialogue between the US and Iran, Pakistan wants to rebuild its relationship with Washington. The mediator's role gives it direct contact with American leadership and adds to its diplomatic weight.

## Balancing the Gulf and China
On one side, Pakistan has close ties with Saudi Arabia and the United Arab Emirates. On the other are its neighbour Iran and its strategic partner China. If the US-Iran confrontation deepens, Pakistan could come under pressure to back one side. By acting as a mediator, it is trying to keep relations with all parties intact.

## Economic Opportunity Riding on Diplomacy
Diplomatic success often brings economic opportunity along with it. Pakistan hopes that if it plays a significant part in regional peace, it could win greater support from the Gulf states, the US and international financial institutions. Beyond that, the prospects for expanding trade and energy cooperation with Iran could strengthen too. The two countries have signed several agreements in the past to boost trade and economic cooperation.

Better relations with the US would help Pakistan secure a bailout package from the International Monetary Fund (IMF), as well as easier access to the financial markets of Western nations.

Both Prime Minister Shehbaz Sharif's government and Pakistan's military leadership can present this mediation as a diplomatic achievement of their own. Success on the international stage can strengthen the position of both the government and the army in domestic politics.

## Does Everyone Agree With This Role?
Even though Pakistan's mediation has won praise, some American and Western leaders have raised questions about its neutrality. Leaders such as US Senator Lindsey Graham have expressed doubts about its role.

It is clear that Pakistan's effort to broker a deal between Iran and the US is not merely a peace mission. Several strategic interests are tied to it, including border security, energy supply, better relations with the US, balancing the Gulf states, economic benefit and international prestige. If this mediation succeeds, Pakistan could establish itself as an important diplomatic bridge between the Middle East and South Asia.

## What this means for you
- **Across India:** Easing Middle East tensions and an open Strait of Hormuz could keep crude oil prices in check, which affects petrol, diesel and everyday costs in India.
- **For investors:** Stability in the region lowers the risk of turmoil in global oil and stock markets.

## Questions & Answers

### 1. What was the interim US-Iran agreement named?
It was named the ‘Islamabad Memorandum of Understanding’, with Pakistan mentioned as both a mediator and a witness.

### 2. What does Pakistan hope to gain from this mediation?
It seeks border security, energy supply, better relations with the US, a balance with the Gulf states, economic benefit and international prestige.

### 3. How long is the border between Pakistan and Iran?
The two countries share a border of roughly 900 kilometres, where problems like Baloch militancy and smuggling exist.

### 4. Which other countries played a role alongside Pakistan?
Countries such as Egypt and Turkey also played important roles alongside Pakistan.

### 5. Who has questioned Pakistan's role?
Some American and Western leaders, such as US Senator Lindsey Graham, have expressed doubts about its neutrality.

### 6. How would better US ties help Pakistan economically?
They would help it secure a bailout package from the International Monetary Fund (IMF) and gain easier access to Western financial markets.

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