- The intensifying Iran-Israel conflict has created ripples across the globe, affecting economies far removed from the battle zones. Bangladesh is no exception. While oil prices rise amid instability in the Middle East and key sea routes such as the Suez Canal and Strait of Hormuz become insecure, Bangladesh is confronted with multiple economic stresses, from inflation and crippling import bills to declining remittances and strained foreign reserves.
- The most immediate concern is rising oil prices. Bangladesh, which imports most of its crude oil from the Gulf states, is especially vulnerable. Higher fuel prices feed directly into production costs across the economy, from manufacturing to agriculture. The mechanism is straightforward: cost-push inflation, where businesses pass on rising costs of purchase and transport to consumers. The inflation rate has already crossed double digits, and higher fuel prices are likely to push it further. Supply-side inflation will be difficult to manage, especially as fiscal space has tightened under the interim government.
https://www.thedailystar.net/business/economy/news/bangladeshs-economy-risk-iran-israel-conflict-3917831
