As of March 2026, the ongoing conflict between Iran and the USA-Israel alliance has created a period of significant uncertainty for global energy markets. Bangladesh relies heavily on fuel and gas imported from the Gulf states. The escalating conflict poses a direct threat to the primary shipping routes in the Middle East.
Bangladesh’s energy supply chain could face a total shutdown, if the Strait of Hormuz is closed or restricted. Any disruption in the Middle East directly affects the power plants, transport, and overall economy of Bangladesh.
Bangladesh imports more than half of its Liquefied Natural Gas (LNG) and nearly all of its crude oil from the Gulf region. These shipments must pass through narrow maritime passages that are now targets in the ongoing war. If supply lines are cut, power plants may stop running and transportation could come to a halt.
Furthermore, the rising cost of oil on the global market is putting a heavy strain on the Country’s foreign currency reserves. To survive this crisis, Bangladesh must look beyond its traditional partners.
The Government should immediately start buying refined fuels from Southeast Asian countries like Singapore and Malaysia. These routes are safer because they do not pass through the conflict zone. In the medium term, Bangladesh needs to build more storage tanks to hold at least a 90-day supply of fuel.
This buffer would give the country time to react, if a sudden war breaks out. Finally, upgrading the refineries is essential so these can process different types of oil from South America or Africa, reducing total dependence on Middle Eastern grades.
| Type | Risk | Mitigation Way | Alternative Sources |
| LNG | Critical | Reroute via Spot Market | Australia, USA, Indonesia |
| Crude Oil | High | Expand Storage, Upgrade Refineries | Nigeria, Brazil, Angola |
| Refined Fuel | Moderate | Diversify Import Partners | Singapore, China, Malaysia |
| LPG | High | Price Caps and Rationing | South-east Asian Traders |
Energy security is no longer just an economic issue. It is now a matter of national survival. Relying on a single volatile region for fuel is a risk that Bangladesh can no longer afford. The Government needs to diversify the scopes to buy required energy and increasing domestic storage capacity.
Only then, the Country can protect her industries and people from the fallout of distant wars. The time to act is now, before the conflict in the Gulf escalates further and disrupts path towards development.
(Colonel (Retd)Engineer A R Mohammad Parvez Mazumder writes the article for Just Energy News)