Bangladesh’s economy is under severe strain due to declining investment, employment shortages, revenue deficits, and falling export earnings. The situation has worsened following a joint U.S.-Israel attack on Iran that triggered regional conflict, driving up global oil and LNG prices and threatening supply chains. Iran’s retaliatory strikes on neighboring Gulf countries have further destabilized the Middle East, raising fears of a deep economic crisis in Bangladesh if the conflict continues.

Analysts note that Bangladesh is almost entirely dependent on imported crude oil and LNG, mainly from Saudi Arabia, the UAE, and Qatar. The closure of the Strait of Hormuz and production halts in Qatar have disrupted supply routes, pushing prices higher. Experts recommend austerity measures, prioritizing essential spending, and exploring alternative energy sources such as Malaysia and Brunei. They also urge short- and medium-term plans to ensure energy and food security.

The conflict threatens remittance inflows from the Middle East, where about one million Bangladeshi workers are employed, and could disrupt garment exports to Europe due to shipping route blockages. Analysts warn that prolonged instability may severely impact reserves, trade balance, and currency stability.