US-Iran war could hit Bangladesh exports, macro stability: Report

New Delhi, March 1 (IANS) The US‑Iran war is likely to disrupt transportation of Bangladesh’s exports to Europe and the US and affect the country’s overall macroeconomic stability, a report has said.

The report from The Daily Star said rising prices of imported petroleum products and liquefied natural gas (LNG) and disruptions to industrial raw material supply chains are likely if the conflict continues.

“Bangladesh is always a victim of geo‑political tension as the country is an importing nation,” Harun‑Ur‑Rashid, chairman of Bangladesh Container Shipping Association, was cited as saying.

Unstable energy price and supply would burden the balance of payments and foreign exchange reserves as the Middle East is the main import source for Bangladesh, the report cited another expert as saying.

Further the main shipping artery of goods-Suez Canal’s proximity to Iran could hinder shipments to Europe and the US, especially garment exports and long‑term conflict may discourage Middle Eastern labour markets from recruiting Bangladeshi workers, it detailed.

“Any long‑term war in the Middle East will invariably have a bad impact on the oil price, transportation of the LPG and availability of the LPG in the international markets,” the report cited Mohammed Amirul Haque, managing director of Delta LPG and president of the LPG Operators Association of Bangladesh.

Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association, noted that a prolonged conflict could cause the budget of consumers to shrink leading to lesser spending on items such as garments.

Bangladesh exported goods worth $10.9 million, mainly garments and pharmaceuticals, to Iran’s $65 billion market in FY25, the report noted.

Analysts have noted that even short‑term conflicts have outsized effects on prices and supply, citing past incidents in the Gulf during the 1980s Iran‑Iraq war.

The Islamic Revolutionary Guard Corps (IRGC) announced a new wave of attacks targeting US and Israeli military installations across the Middle East, to avenge the recent US-Israeli strikes on Iran that reportedly killed Supreme Leader Ayatollah Ali Khamenei.

–IANS

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