Bangladesh: Bangladesh could face mounting energy and financial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports.
According to United News of Bangladesh, with 65-70 percent of the nation’s energy demand met through imports-primarily Liquefied Natural Gas (LNG), crude oil, and Liquefied Petroleum Gas (LPG)-sector experts warn that a prolonged regional war could paralyze the economy.
The Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is officially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel.
For Bangladesh, this is a direct threat. The country relies on this specific maritime route for LNG, crude oil, and LPG, with significant portions of these imports sourced from Qatar, Oman, Saudi Arabia, and the UAE. Any disruption could lead to severe power shortages, a gas crisis, LPG scarcity, and economic strain.
Professor M. Tamim, an energy expert and Pro-VC of Independent University, warned that “a continued war will spike oil prices and disrupt Qatar’s LNG supply, creating a grave gas crisis.” The domestic LPG market, already facing a shortage, could see prices skyrocket and supplies vanish.
Dr. Ijaz Hossain, Professor and Dean of Engineering, Specialization Energy and Environment of BUET, noted that energy supply from the Middle East will be severely disrupted if the war prolongs. He emphasized that the impact on both energy supply and electricity generation in Bangladesh would be significant, given the limited national storage capacity.
Despite the looming threat, the Bangladesh Petroleum Corporation (BPC) maintains that refined oil supplies are “safe” until June, as they are sourced from Malaysia, China, and Singapore, bypassing the Strait of Hormuz. However, the BPC Chairman, Md. Rezanur Rahman, admitted they are “closely monitoring” the crude oil situation.
Petrobangla Director (Operations) Engr. Md. Rafiqul Islam echoed these concerns, stating that while they are monitoring the situation 24/7, a closure of the Qatari shipping route remains a major cause for anxiety.
Energy Minister Iqbal Hassan Mahmood has called an emergency meeting to discuss the crisis, stating that they are exploring alternative import sources to prevent an energy vacuum. Industry leaders, including East Coast Group Chairman Azam J. Chowdhury, have urged the government to establish advanced communications with alternative suppliers like Indonesia and Malaysia to mitigate the risk.