Last Updated on March 6, 2026 7:16 pm by INDIAN AWAAZ
Zakir Hossain from Dhaka
Rising military tensions involving Iran, Israel and the United States are beginning to ripple through Bangladesh’s economy, with exporters and economists warning of higher energy costs, supply disruptions and inflationary pressure.
Analysts say the developing crisis around the Strait of Hormuz, a key global energy corridor, could trigger a multi-layered economic shock for Bangladesh, which depends heavily on Middle Eastern fuel imports and Gulf trade routes.
Business leaders say the uncertainty is already affecting export planning and logistics. Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said exporters were closely monitoring the situation. “We are concerned about the implications for export and import. Discussions are underway with the government and foreign buyers regarding shipment schedules while we continue to watch developments,” he said.
Muhammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the export sector relies heavily on uninterrupted global logistics and energy supplies. “Exports are closely linked with imports of raw materials. Any disruption in shipping routes or uncertainty in energy supply will directly affect the industry,” he said.
Global oil prices have already reacted to the tensions. On Wednesday, Brent crude rose to $82.53 per barrel while West Texas Intermediate (WTI) climbed to $75.37, their highest levels since early 2025. Nearly 90% of Bangladesh’s fuel imports come from the Middle East, with much of the supply passing through the Strait of Hormuz, which carries about one-fifth of global oil shipments and large volumes of liquefied natural gas. Any disruption could increase power generation costs, transport expenses and pressure on foreign exchange reserves.
The conflict is also affecting logistics at Hazrat Shahjalal International Airport and Chittagong Port. Cargo operations by airlines from Qatar, Kuwait, Oman and the United Arab Emirates have been temporarily suspended, leaving over 1,200 tonnes of export goods, mainly ready-made garments, stranded at Dhaka airport.
Shipping has also been disrupted. Mediterranean Shipping Company (MSC) has halted new container bookings for Middle East-bound cargo, leaving more than 1,000 containers carrying frozen fish, processed food and plastic products stuck at various ports.
Import costs are rising as well. Traders say freight charges for palm oil shipments from Malaysia and Indonesia have increased by $8–$10 per tonne due to higher war-risk premiums. Dr Mustafizur Rahman of the Centre for Policy Dialogue (CPD) said the immediate disruption is logistical but the bigger concern is energy security.
“The duration of the conflict remains uncertain, but its economic impact is already visible. Bangladesh must prepare an emergency roadmap for alternative sourcing and supply resilience,” he said.
Shipping companies are also rerouting vessels via the Cape of Good Hope, adding nearly 5,000 kilometres to journeys and pushing up freight rates. The textile industry is facing delays in cotton imports, while the plastics sector is struggling with disrupted petrochemical shipments. Analysts also warn that prolonged instability in the Gulf could affect remittance inflows from millions of Bangladeshi workers employed there.
Dr Selim Raihan of the South Asian Network on Economic Modeling (SANEM) urged the government to hold urgent consultations with businesses and researchers. Although authorities say Bangladesh has several weeks of fuel and food reserves, economists argue that strategic stockpiling and diversification of supply sources are now essential as tensions in the Persian Gulf threaten to push the economy into a phase of higher prices and volatility.