Body
Fuel supply disruptions linked to the war in Iran have rippled into Bangladesh, worsening day-to-day pressures in the capital Dhaka and increasing costs for households and businesses, according to the Associated Press. The report described how people who depend on fuel and power for work are dealing with longer waits for gasoline and diesel while factories face higher operating expenses and slower output.
Tariqul Islam, a 53-year-old father of four, said he lost savings after setbacks in his clothing business about a year and a half ago and switched to ride-sharing on his motorbike. He said he spent hours in fuel lines until recent disruptions eased only slightly, and that the pattern of shortage had a direct effect on his ability to earn money. “My family was managing fairly well through ride-sharing,” he said, but “after the fuel shortage began, I would buy fuel one day and run the bike for two days. As a result, I had to sit idle for one day, which reduced my income,” he said.
Islam’s account reflects a broader squeeze in Bangladesh, which relies heavily on imported fuel, the report said. The Associated Press described that energy shortages have disrupted daily life and slowed industrial output while raising concerns about economic growth as global tensions push up prices and strain supplies. The report added that conditions had eased “slightly in recent days,” with shorter queues at fuel stations after the government increased supplies, but with ongoing concern across sectors.
The Associated Press also linked Bangladesh’s challenges to wider conditions across Asia. It said the continent is exposed because it relies on imported fuel, much of it moving through the Strait of Hormuz, described as a chokepoint for about a fifth of global oil and natural gas trade. The higher fuel costs, the report said, are contributing to inflation and squeezing household budgets while industries from manufacturing to transport face rising operating costs and supply disruptions.
In response to the crisis, Bangladesh imposed austerity measures, the report said, including cutting office hours and mall opening hours. The country is seeking alternative fuel sources and external financing, and it has also moved to manage shortages through steps such as fuel rationing and restrictions aimed at reducing demand. The Associated Press said the government shut fertilizer factories to divert gas to power plants and restricted evening hours for shopping malls, while gas and diesel shortages had triggered more frequent power cuts in industrial zones.
The report cited expectations for Bangladesh’s macroeconomic outlook tied to sustained conflict-driven energy disruptions. It said the World Bank expects Bangladesh’s growth to slow to 3.9% in the fiscal year ending in June 2026, warning that a prolonged Middle East conflict could fuel inflation, widen the current account deficit, and strain public finances through higher energy subsidies. The Associated Press quoted Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, as saying the economy already faced “pre-existing vulnerabilities and challenges, in particular on the economic and employment front.” Pesme also said the rising costs were “obviously making the fiscal situation more difficult,” and warned that authorities should be cautious about raising fuel prices because higher costs could hurt farmers and agriculture.
Bangladesh’s garment sector, described as the backbone of the economy, is also under pressure as energy shortages raise costs and threaten export performance. The Associated Press reported that business leaders said rising energy costs are driving up expenses and could lead to setbacks for shipments to Europe and the U.S. Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, said exports to Europe and the U.S. could face a significant setback and said shipments had fallen between 5% and 13% in recent months. Chowdhury warned that customers could lose confidence in Bangladesh’s delivery capacity and that competing nations such as India, Vietnam and Cambodia could gain market share if the crisis persists, and said factory output had dropped by 30% to 40% for various reasons.
The Associated Press said the report’s garment-industry quotes also pointed to increased costs for petroleum-based materials used in production and higher spending on diesel generators to handle power cuts. Alvi Islam, director of Arrival Fashion Limited, said manufacturers were facing higher costs for items such as sewing threads, poly bags and cartons, and that “spending more on diesel generators” had become necessary during frequent power cuts. Islam said his company exports products worth about $40 million annually and that it runs generators at least four hours a day during production. “For that reason, the cost of doing business for exporting garments has increased quite significantly in past one month,” he said.
Workers in the sector said the disruption is threatening livelihoods. Mosammet Runa, a garment worker who the report said is 35, said she fears for her family’s future if the war continues. “Millions of people like us depend on this industry. It is how we survive,” she said, adding that she and her husband earn about $400 a month to support their family of six. Runa said a prolonged conflict could wipe out jobs and called for an end to fighting, saying, “We are innocent people. The world should not make us victims.”