I agree with most of what you said except the Israel part. You might not be fully aware of Israeli policies, but if you did, your heart will sink and your stomach will turn. Pakistan has not ruled out recognising Israel. However, it will only recognise Israel only when a soverign Palestinian state is created.
'An embarrassment to Israel': Netanyahu condemns Youtube humiliation of Palestinian prisoner - Haaretz Daily Newspaper | Israel News
That is someone's mother/sister/daughter.
As for an embargo, it will all depend upon the position in which the U.S. finds itself dring the war. If it's still stuck in Afghanistan and depends upon Pakistan for it's supplies, it will not place an embargo but will force the two parties to talk it out or atleast call for a cease-fire. If the U.S. is out of Afghanistan by then, the PAF will not be the only institution that will be embargoed.