A report from The Daily Star highlighted that the ongoing US-Iran war could disrupt Bangladesh’s exports to Europe and the US, impacting the country’s macroeconomic stability. The conflict may lead to higher prices of imported petroleum products and LNG, along with disruptions in industrial raw material supply chains. Bangladesh, being an importing nation, is vulnerable to geopolitical tensions, as noted by Harun-Ur-Rashid, chairman of Bangladesh Container Shipping Association.
Unstable energy prices and supplies from the Middle East, a key import source for Bangladesh, could strain the country’s balance of payments and foreign exchange reserves, according to experts cited in the report. Additionally, the proximity of the Suez Canal to Iran raises concerns about hindrances in shipping goods to Europe and the US, particularly affecting garment exports. Prolonged conflict could also deter Middle Eastern labor markets from hiring Bangladeshi workers, the report detailed.
Mohammed Amirul Haque, managing director of Delta LPG and president of the LPG Operators Association of Bangladesh, warned that a protracted war in the Middle East would negatively impact oil prices, LPG transportation, and availability in international markets. Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association, expressed concerns that a prolonged conflict could reduce consumer spending on items like garments, affecting the industry.
The report highlighted that Bangladesh exported goods worth $10.9 million, primarily garments and pharmaceuticals, to Iran’s $65 billion market in FY25. Analysts pointed out that even short-term conflicts in the Gulf region historically have had significant effects on prices and supply, citing past incidents during the 1980s Iran-Iraq war.
