Bangladesh is experiencing mounting economic pressure as the Iran war sharply increases global oil prices. Since the United States and Israel launched an offensive in Iran on February 28, 2026, oil prices have surged from around 71–81 dollars per barrel to as high as 128 dollars in early April. The disruption of fuel supply through the Hormuz Strait, which carries about 63 percent of Bangladesh’s fuel imports, has forced the government to introduce oil rationing from March 8. Domestic fuel prices have risen by up to 16 percent, and liquefied gas prices have increased twice within 18 days, worsening inflation and living costs.

The conflict has triggered a cost-push inflation across Bangladesh, affecting households, transport, and industries. The government, already under fiscal strain, has sought about 2 billion dollars in emergency loans from development partners while facing pressure from the IMF and World Bank to reduce fuel subsidies. Rising fuel costs are also expected to severely impact agriculture, increasing production costs and threatening food security.

If the war continues, Bangladesh may face further economic instability, including risks to remittance inflows from the Middle East and potential social repercussions from returning migrant workers.