Iran and Pakistan Forge Trade and Security Pact Amid US War

Iranian Interior Minister Eskandar Momeni and President Masoud Pezeshkian led a series of high-level diplomatic visits to Islamabad and Lahore between July 20 and July 24, 2026. The delegations met with Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir to establish a strategic partnership aimed at increasing annual bilateral trade from $3 billion to $10 billion. Key agreements include the upgradation of the Main Line-3 railway corridor by December 2029, the designation of Taftan Railway Station as a customs hub, and the revival of the Islamabad-Tehran-Istanbul Freight Train Service.

These diplomatic efforts occurred as regional instability peaked. President Masoud Pezeshkian declared that Iran is engaged in a "full-scale war" with the United States following U.S. strikes on Iranian nuclear facilities, aircraft hangars, and drone storage sites. Retaliatory strikes by the Islamic Revolutionary Guards Corps targeted Bahrain, Jordan, and Syria. The conflict led to the collapse of the Islamabad Memorandum of Understanding, a ceasefire framework brokered by Pakistan and Qatar.

While President Donald Trump stated the U.S. has no interest in talks as the conflict shifts toward control of the Strait of Hormuz, the Government of Pakistan continued to position itself as an "honest and sincere mediator." To stabilize relations, Iran and Pakistan also agreed to expand cooperation on counterterrorism, drug trafficking, and illegal immigration, specifically focusing on the border with Afghanistan.