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International

Pakistan Locks In Oil Deal, Board of Peace Seat and Crypto Partnership as US Ties Deepen After Iran Mediation

Pakistan's successful mediation between Washington and Tehran has unlocked a cascade of benefits with the Trump administration: a bilateral oil development agreement, a partnership with a Trump-family cryptocurrency platform, and a seat on Trump's Board of Peace — marking the most substantive shift in US-Pakistan relations in over a decade.

Pakistan’s pivot to becoming Washington’s indispensable regional partner has produced a cluster of concrete agreements and symbolic acts that analysts describe as the most significant improvement in US-Pakistan relations since the post-9/11 alignment, according to reporting by Foreign Policy and Al Jazeera (Foreign Policy; Al Jazeera).

Pakistan nominated US President Donald Trump for the Nobel Peace Prize following bilateral meetings in June, joined Trump’s Board of Peace — a consultative body set up by the current administration — and signed a bilateral agreement with the United States to jointly develop Pakistan’s oil reserves. Islamabad also announced a partnership with World Liberty Financial, a cryptocurrency platform co-founded by members of the Trump family, according to Foreign Policy.

The diplomatic opening follows Pakistan’s role in producing the June 18 ceasefire framework between the United States and Iran. The Council on Foreign Relations described Pakistan’s emergence as an “unlikely but indispensable mediator” in those negotiations, with Islamabad hosting formal talks and serving as the back-channel between the two sides (Council on Foreign Relations).

A calculated bet

The deepening ties with Washington represent a strategic calculation by Pakistan’s civil-military leadership — principally Army Chief General Asim Munir, according to Foreign Policy — that alignment with the Trump administration offers both economic dividends and insulation from the security pressures Pakistan faces on its western border with Afghanistan. Critics within Pakistani policy circles note that the approach risks entangling Islamabad in US Middle East policy at a moment when the country’s eastern and western borders are already under strain.

Iran, for its part, has responded warmly to Pakistan’s role despite the US alignment: Iranian President Masoud Pezeshkian’s state visit to Islamabad this week was framed as an expression of gratitude to Pakistan for its mediation, not a rebuke of the relationship with Washington.

Hamza Azhar SalamEditor — Hamza Azhar Salam · Write to us with suggestions or tips
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