Experts have warned that the Iran war’s impact on global oil markets could inflict lasting harm on the US economy. The International Energy Agency (IEA) described the situation as one of the worst oil supply crises in history, triggering what economists call “demand destruction,” where soaring prices force consumers to permanently change spending habits. Rising fuel costs are already draining Americans’ savings and tax refunds, hitting low-income households hardest.

RSM US chief economist Joe Brusuelas said the US economy faces a chain reaction: higher energy prices act like an extra tax on families and businesses, eroding confidence, halting major purchases, reducing profits, and prompting layoffs. The Federal Reserve may raise interest rates, worsening the downturn. With the Strait of Hormuz closed, fertilizer and industrial raw material supplies are also disrupted, raising fears of further food price increases in coming months. Michigan State University’s David Ortega noted that food price shocks may take six months or more to fully appear.

Oxford Economics’ Nancy Vanden Houten said a ceasefire and partial oil price stabilization may have prevented a total collapse, though conditions remain volatile.

Singapore’s Prime Minister Lawrence Wong has warned that the country faces a potential economic collapse due to the prolonged closure of the Hormuz Strait caused by the ongoing Iran war. Speaking on May 1 during a May Day address, he said the conflict shows no sign of ending soon and that supply chains could face further disruption in the coming months.

Wong noted that Asian economies are heavily dependent on energy and essential goods from the Gulf region, making them particularly vulnerable to the crisis. He cautioned that global inflation will rise, pushing up prices of fuel, food, and other necessities, while many countries could slip into recession. Singapore, he said, will directly feel the impact as growth slows and inflation pressures businesses, workers, and families.

The prime minister added that even if the Hormuz Strait reopens soon, recovery will take time due to damaged ports and energy infrastructure and the need to clear naval mines. He described the Middle East conflict as casting a dark shadow over the global economy.

Global trade patterns have shifted sharply after the closure of the strategic Hormuz Strait due to the ongoing Iran war. According to an AFP report, ships can no longer reach Gulf destinations such as Bahrain, Kuwait, and Sharjah directly, forcing shipowners and importers to rely on alternative land routes. The Red Sea port of Jeddah in Saudi Arabia has emerged as a new commercial hub, with major shipping companies including MSC, CMA CGM, Maersk, and COSCO unloading cargo there before trucking goods across desert highways to Gulf states.

The surge in freight traffic has caused severe congestion at Jeddah port, which was not designed to handle such large volumes of imports. Shipping firms are also planning to use ports outside the Hormuz Strait, including Sohar in Oman and Khor Fakkan and Fujairah in the UAE. Additionally, Jordan’s Aqaba port is being used as a base for shipments to Baghdad and Basra, while a Turkish corridor is facilitating transport to northern Iraq.

These rerouted logistics networks indicate a major regional adjustment in maritime and land trade flows across the Middle East.

A discussion meeting was held in Moulvibazar to ensure the proper implementation of the 2026 Boro paddy and rice procurement program. The meeting, organized by the District Food Department, took place on Thursday afternoon at the conference room of the Deputy Commissioner, who also presided over the session. Officials discussed various aspects of the procurement activities planned for the Boro season.

During the meeting, it was informed that the targets for collecting parboiled and non-parboiled rice have not yet been set. Paddy will be purchased directly from farmers through an app, and selected farmers must complete online registration. Rice will be procured from millers through contracts. To ensure fair prices for farmers, the price per kilogram of paddy has been fixed at 36 taka.

The procurement drive will run from May 30 to August 31. Participants were instructed to maintain transparency and accountability throughout the process. Representatives from the agriculture and food departments, mill owners’ association, and related committees attended and emphasized coordination in implementation.

The United States has remained in a state of 'permanent war' for the past 25 years, leading to soaring defense expenditures. Dan Grazier, a senior fellow at the Washington-based Stimson Center, told Al Jazeera that many American companies and national security officials have become accustomed to high defense budgets, making it difficult to reverse the trend.

Grazier explained that maintaining elevated defense spending often depends on engaging in new conflicts. He cited the ongoing Iran war, noting that the missiles and bombs currently being used will need to be replaced, creating lucrative opportunities for major weapons producers such as Lockheed Martin and RTX. This cycle of sustained military spending has become a significant source of income for the U.S. arms industry.

According to the report, the entrenched pattern of high defense budgets continues to benefit American defense contractors, reinforcing the economic incentives tied to prolonged military engagements.

State-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) has launched gas exploration up to six kilometers beneath the surface, marking the deepest drilling effort in the country’s history. Preparations are complete for exploration wells at Titas in Brahmanbaria, Bakhrabad and Srikail in Cumilla, and Mobarakpur in Pabna’s Santhia upazila. Petrobangla sources confirmed that one well has already begun operations, breaking the previous depth record of four kilometers.

Officials said the initiative follows 3D surveys indicating potential gas reserves below hard rock layers, with estimates suggesting around 2.5 trillion cubic feet of gas across the targeted fields. Petrobangla plans deep drilling at four wells—two under Bangladesh Gas Fields Company Limited and two under BAPEX. The move comes after years of limited exploration activity, during which Bangladesh’s energy sector became increasingly import-dependent.

Petrobangla Chairman Md. Erfanul Haque described the six-kilometer drilling as a bold step to address the national gas shortage. He said 150 wells are planned under short-, medium-, and long-term programs, with expectations of adding about three trillion cubic feet of gas reserves upon completion.

Widespread load-shedding and fuel shortages have severely disrupted garment production in Savar and Ashulia, two major industrial areas near Dhaka. Factory officials reported that production has dropped by 15–20 percent, with some plants operating generators to maintain limited output. Abul Kashem, Deputy Managing Director of AKH Group, said daily production has fallen by about 10 percent due to fuel scarcity and rising costs, while transport delays are causing missed shipment deadlines and reduced foreign orders.

At Al Muslim Group and JK Group factories, managers said fuel shortages and higher prices have forced them to cut production from over 100,000 pieces a day to 80,000–90,000. Transport disruptions have led some owners to ship goods by air at their own expense, increasing costs. Jahangir Hossain of Stitches Limited warned that if the situation continues, operating garment factories will become unsustainable.

Dhaka Palli Bidyut Samiti-1’s Senior General Manager Akhtar Uzzaman Laskar said electricity supply shortages stem from lower-than-demand generation, but the government has taken measures to boost output soon.

A recent recruitment scandal at Islami Bank Bangladesh PLC has exposed deep governance failures within the institution. Between 2017 and 2024, under the control of S. Alam Group, the bank hired over 10,800 employees, about 75 percent without public advertisement, with most appointments concentrated in one Chattogram subdistrict. Once a leading Islamic bank in South Asia, it now faces near insolvency due to irregular recruitment and financial mismanagement.

Audit and central bank inspections revealed manipulated hiring policies and massive irregular loans issued without collateral to newly formed companies. The government has already injected around Tk 35,000 crore to address the resulting capital shortfall. The article outlines five urgent steps: reducing excess staff, separating bad assets through an asset management company, restructuring capital, strengthening governance, and protecting depositor confidence. It also calls for a national Shariah supervisory board to ensure ethical compliance across Islamic banks.

The author warns that restoring control to those responsible for the crisis would destroy public trust and undermine any reform effort, urging immediate and accountable action to rebuild the bank’s credibility.

Thousands of farmers in Bangladesh’s Haor region are facing a triple crisis caused by early rainfall, a shortage of laborers, and insufficient harvesting machinery. According to reports, there were about 10 percent fewer harvesters in the fields this year compared to last year, though the Department of Agricultural Extension disputes this claim. The department says additional officers have been deployed to assist farmers and that drying machines are being sent to affected areas such as Sunamganj.

Early floods have submerged 28,201 hectares of paddy fields, affecting around 4,000 farmers whose crops remain underwater. Farmers report that laborers from other districts, who usually arrive during the harvest season, could not come this year due to early rains, leading to higher wages and delayed harvesting. Experts warn that prolonged wet conditions are causing germination in standing crops, raising fears of further losses.

Agricultural economists estimate that 30–35 percent of crops in the Haor region may be damaged, potentially leading to a nationwide 10 percent shortfall in Boro rice production and possible food price increases.

The World Bank Group has warned that global energy prices could increase by up to 24 percent in 2026 due to ongoing conflict in the Middle East. Its latest Commodity Markets Outlook report attributes the projected rise to attacks on energy infrastructure and disruptions in the Strait of Hormuz, a key route for about 35 percent of the world’s crude oil shipments. The report notes that global oil supply has already fallen by around 10 million barrels per day, creating immediate pressure on international energy markets.

According to the baseline forecast, the average price of Brent crude oil could reach 86 dollars per barrel in 2026, up from 69 dollars this year. If the conflict continues or supply chains fail to recover quickly, prices could climb as high as 115 dollars per barrel. The report also predicts a 31 percent rise in fertilizer prices, with urea potentially increasing by 60 percent due to higher natural gas costs and supply uncertainty.

The World Bank projects that developing economies may face average inflation of 5.1 percent next year, rising to 5.8 percent in a worst-case scenario, while their economic growth could slow to 3.6 percent.

Bangladesh’s Economic Relations Division (ERD) reported that in the first nine months of the current fiscal year (July–March), foreign loan commitments and disbursements declined, while repayment obligations increased significantly. The government repaid a total of 3.52 billion US dollars in principal and interest, up 9.74 percent from the same period last year. Meanwhile, foreign aid commitments fell by 6.69 percent to 2.80 billion dollars, and total disbursements dropped by 19 percent to 3.89 billion dollars.

ERD officials attributed the slowdown in foreign fund releases to election-related transitions, administrative restructuring, and project re-evaluations following the new government’s assumption of office. Delays in tender reviews, contract approvals, and design revisions also contributed to slower disbursements. The officials expect improvement later in the fiscal year, citing efforts to secure about 3.2 billion dollars in budget support.

The report noted that Russia, the World Bank, and the Asian Development Bank were the top lenders during the period. Rising repayment obligations, both foreign and domestic, indicate growing fiscal pressure on the government, with total repayments reaching about 430 billion taka in local currency terms.

Biman Bangladesh Airlines has signed a contract with US manufacturer Boeing to purchase 14 new aircraft worth about 3.7 billion US dollars, equivalent to roughly 40,000 crore Bangladeshi taka. The signing ceremony took place on Thursday evening at a hotel in Dhaka, where Biman’s Managing Director and CEO Kaiser Sohail Ahmed and Boeing Vice President Paul Righi signed the agreement. The event was attended by the State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat, the Prime Minister’s Foreign Affairs Adviser Humayun Kabir, US Ambassador Brent T Christensen, and other officials.

Under the deal, Biman will acquire eight Boeing 787-10 Dreamliners, two 787-9 Dreamliners, and four 737-8 MAX jets. Officials said the purchase aims to modernize the fleet and expand long-haul operations to meet growing passenger demand. The new aircraft will serve routes across Europe, the Middle East, and Asia. The agreement follows years of competition between Boeing and Airbus, with the interim government ultimately choosing Boeing after the 2024 political transition.

Payments will be made over 10 to 20 years, with annual installments estimated at 1,500 to 2,000 crore taka. The first delivery is expected by November 2031, meaning short-term fleet shortages will persist.

International Energy Agency (IEA) chief Fatih Birol has warned that the world is facing the largest energy crisis in history due to the ongoing war. Speaking at a conference in Paris, he said the current situation has created major economic and energy challenges globally. Birol noted that oil and gas markets are under severe strain, with oil prices exceeding 120 dollars per barrel, putting immense pressure on many countries.

He emphasized that the war has caused unprecedented instability in global energy security. According to Birol, high prices and disruptions in supply chains have pushed the world economy into a difficult period. His remarks highlight the scale of the crisis and the vulnerability of global energy systems under current geopolitical tensions.

The IEA chief’s warning underscores the urgent need for stability in energy markets as nations struggle with rising costs and supply uncertainties.

Bangladesh Bank has withdrawn the requirement for maintaining provisions against funds stuck in five merged Shariah-based banks. The decision, announced on Thursday by the central bank’s relevant department, aims to ease financial pressure on the affected banks and institutions that have been unable to recover large sums for an extended period.

The merged banks are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank. These institutions were consolidated into a unified Islamic banking structure due to severe liquidity crises. According to Bangladesh Bank sources, over Tk 15,000 crore from other banks and financial institutions remain stuck with these five banks, including more than Tk 8,000 crore belonging to one Islamic bank.

Officials explained that the funds are covered under a specific scheme, ensuring eventual recovery either through direct repayment, long-term fixed deposits, or share allocations. Industry observers noted that while the decision offers short-term relief, recovering the trapped funds remains a major long-term challenge.

The National Board of Revenue (NBR) of Bangladesh has announced full exemption from all existing duties and taxes on the import of electric buses used for transporting students of schools, colleges, universities, and similar educational institutions. The decision was formalized through a statutory regulatory order (SRO) issued on Thursday, according to an official press release. The exemption covers customs duty, regulatory duty, value-added tax, supplementary duty, advance tax, and advance income tax.

The NBR stated that both educational institutions and their authorized representatives importing electric buses for student transport will be eligible for the exemption. The buses must be painted yellow and clearly marked with words such as “school,” “college,” “student bus,” or “transport.” The NBR will process import applications within ten working days. The board also mentioned that the government is considering reducing duties on electric buses for general passengers to encourage energy savings and reduce travel costs.

According to the NBR, the exemption will help institutions provide modern, eco-friendly transport for students, reduce traffic congestion, save fuel, and lower parents’ transportation expenses.