US–Iran Tensions: Experts flag energy concerns for Bangladesh
Staff Reporter :
Bangladesh may come under increasing energy and financial stress amid escalating tensions between the United States and Iran, as fears grows over potential disruptions in the Strait of Hormuz—a critical corridor for the country’s fuel imports.
Energy analysts note that around 65–70 percent of Bangladesh’s total energy demand is met through imports, mainly liquefied natural gas (LNG), and crude oil and liquefied petroleum gas (LPG).
Any prolonged conflict in the region, they warn, could severely destabilise the economy.
The Strait of Hormuz is the world’s most important oil transit route. Recent reports suggest Iran’s Revolutionary Guard has issued radio warnings indicating that vessels could face restrictions.
Should the passage be formally closed, international research agencies predict crude oil prices could jump to between $95 and $110 per barrel.
Such a scenario would pose a direct challenge for Bangladesh, which depends heavily on this route for energy supplies including LNG which is about 55 percent of total imports, mainly from Qatar and Oman, Crude oil, roughly 20 percent of annual demand, sourced from Saudi Arabia and the UAE, LPG, nearly the entire supply chain is centred on the Middle East Experts caution that any interruption in these supply lines could trigger cascading effects across multiple sectors.
Power shortages: With Qatar serving as a key LNG supplier for power generation, disruptions could lead to widespread load-shedding during the peak summer months.
Gas crisis: Professor M. Tamim, energy expert and Pro-Vice Chancellor of Independent University, Bangladesh, warned that a prolonged conflict would drive up oil prices and disrupt Qatari LNG shipments, potentially creating a serious gas shortage.
LPG scarcity: The domestic market requires around 1.2 lakh tonnes of LPG each month and is already under pressure. Any break in supply could cause prices to soar and availability to shrink sharply.
Economic pressure: Higher global oil prices would strain foreign exchange reserves and further raise living costs. Dr Ijaz Hossain, Professor and Dean of Engineering (Energy and Environment) at Bangladesh University of Engineering and Technology, told that a prolonged war would severely disrupt Middle Eastern energy supplies.
He added that both energy availability and power generation would be badly affected, noting that Bangladesh has limited national storage capacity and few immediate alternatives.
Despite the growing concerns, the Bangladesh Petroleum Corporation (BPC) said refined fuel supplies remain secure until June, as current imports are sourced from Malaysia, China and Singapore, avoiding the Strait of Hormuz. However, BPC Chairman Md Rezanur Rahman acknowledged that the crude oil situation is being closely monitored.
Similar caution was voiced by Petrobangla, with Director (Operations) Engr Md Rafiqul Islam saying the agency is monitoring developments round the clock, while a possible disruption of Qatari shipping routes remains a major concern.
Energy Minister Iqbal Hassan Mahmood has already convened an emergency meeting to assess the situation.
“We are monitoring developments and exploring alternative import sources so Bangladesh does not face an energy vacuum,” he told reporters.
Industry leaders, including East Coast Group Chairman Azam J Chowdhury, have urged the government to strengthen communication with alternative suppliers such as Indonesia and Malaysia to reduce potential risks.
