Bangladesh Faces Oil Crisis Amid Iran Conflict

April 13, 2026

Dhaka, April 13: Bangladesh is facing growing economic pressure as the ongoing conflict involving Iran continues to disrupt global oil and LNG supply routes, particularly through the Strait of Hormuz, pushing up energy import costs and straining the country’s economy.

According to reports, the disruption has triggered a sharp rise in global crude oil prices, increasing Bangladesh’s already heavy dependence on imported fuel. The country imports nearly all of its energy needs, making it highly vulnerable to international price shocks and supply instability.

Economists warn that higher fuel costs could significantly increase electricity generation expenses, transportation costs, and industrial production charges, which may ultimately fuel inflation and widen the trade deficit.

The rising import bill is also expected to put additional pressure on foreign exchange reserves and the local currency, while policymakers may face difficult choices between raising domestic fuel prices or increasing subsidies to stabilize the market.

Analysts note that prolonged instability in the Middle East could further weaken Bangladesh’s macroeconomic stability, affecting exports, manufacturing output, and overall growth momentum.

A recent analysis suggests that even a moderate surge in global oil and LNG prices could reduce Bangladesh’s GDP growth while increasing inflationary pressure across essential sectors.