United News of Bangladesh

Global gas and oil prices surged while stock markets across the world fell sharply as the Middle East conflict intensified, raising concerns about its duration and economic impact. In the UK, gas prices hit their highest level in three years on Tuesday after significant gains on Monday, while Brent crude briefly exceeded $85 a barrel, a level last seen in July 2024. Major stock indexes in the US, Europe, and Asia also suffered losses. Investors are assessing the economic consequences of the Israel and US airstrikes on Iran and Tehran’s retaliatory measures, including potential effects on inflation and interest rates. Analysts fear that disruption in this critical energy and shipping region could mirror the impact of Russia’s full-scale invasion of Ukraine four years ago, which drove up global energy costs, reports BBC. The UK’s Office for Budget Responsibility warned in its latest fiscal outlook that the conflict could severely affect both global and UK economies. German Chancellor Friedrich Merz, after meeting with US President Donald Trump at the White House, also expressed concern over possible economic damage, urging a swift end to the hostilities. By Tuesday’s close, London’s FTSE 100 fell 2.75%, while Germany’s DAX and France’s CAC 40 dropped 3.44% and 3.46% respectively. In the US, the S&P 500 opened sharply lower but ended down 0.9%. In Asia, Japan’s Nikkei fell 3.3%, Hong Kong’s Hang Seng and China’s Shanghai Composite declined, and South Korea’s Kospi fell over 7% following Monday’s holiday closure. UK gas prices rose above 165p per therm, a level last seen a year after the Ukraine war began, and closed at 138p, over 20% higher than Monday. Prices have doubled since the US and Israel began airstrikes on Iran. The spike followed QatarEnergy halting production after “military attacks” on its facilities, later suspending output of aluminium, methanol, and urea used in fertilizers. Higher gas prices may increase household energy bills in the UK, though the impact is capped until July. Oil prices rose moderately, as crude can be sourced more flexibly, but higher fuel costs could still push up transport, food, and overall inflation, influencing central bank decisions on interest rates. Shipping through the Strait of Hormuz, which carries about 20% of the world’s oil and gas, has largely stopped after attacks on vessels. Ebrahim Jabbari, adviser to Iran’s Islamic Revolutionary Guard Corps chief, warned ships against entering the region. Supertanker freight rates from the Middle East to China hit a record $400,000 per day, nearly double last week’s rate. Logistics experts say insurance risks and carrier hesitancy have effectively closed the Strait of Hormuz, likely driving global shipping rates higher. UK consumers may face increased fuel prices if crude remains elevated, according to Alasdair Locke, chairman of Motor Fuel Group.

A senior Iranian military advisor on Monday warned that Iran’s armed forces will prevent any oil exports through the Strait of Hormuz. Ebrahim Jabbari, an advisor to the chief commander of Iran’s Islamic Revolutionary Guard Corps (IRGC), made the remarks in an interview with state-run IRIB TV, saying the country’s forces would act against any oil tankers attempting to pass through the strait. Iran death toll hits 787 as Israeli, US strikes intensify He asserted that the Strait of Hormuz has been closed and that the naval forces of the IRGC and the Iranian army will set on fire any ship trying to transit the waterway. Jabbari also said Iran would target oil pipelines in the region, emphasizing, “we will not let oil be exported from the region.” He further stated that the United States relies heavily on oil from West Asia and warned that “not a single drop of oil will be supplied to them.”

Bangladesh could face mounting energy and financial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports. With 65-70 percent of the nation's energy demand met through imports—primarily Liquefied Natural Gas (LNG), crude oil, and Liquefied Petroleum Gas (LPG)—sector experts warn that a prolonged regional war could paralyze the economy. The Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is officially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel. For Bangladesh, this is a direct threat. The country relies on this specific maritime route for: LNG: 55 percent of total imports (mainly from Qatar and Oman). Crude Oil: 20 percent of annual demand (sourced from Saudi Arabia and UAE). LPG: Almost 100 percent of supply is Middle East-centric. How Bangladesh Will Be Affected The disruption of this supply chain is expected to trigger a domino effect across several sectors. Severe Power Shortages: As Qatar is a primary source of gas for power plants, any disruption in LNG shipments will lead to widespread load-shedding during the upcoming peak summer season. Gas Crisis: Professor M. Tamim, an energy expert and Pro-VC of Independent University, warned that "a continued war will spike oil prices and disrupt Qatar's LNG supply, creating a grave gas crisis." LPG Scarcity: The domestic market, which requires 1.2 lakh tonnes of LPG monthly, is already facing a shortage. A supply chain break would cause prices to skyrocket and supplies to vanish. Economic Strain: Rising global oil prices will put immense pressure on Bangladesh's foreign exchange reserves and increase the cost of living. Dr. Ijaz Hossain, Professor and Dean of Engineering, Specialization Energy and Environment of BUET told UNB that energy supply from the Middle East will be severely disrupted if the war prolonged. “Impact of this both energy supply and electricity generation in Bangladesh would be affected vastly as there is no immediate alternative. The national storage capacity is small for our country,” he added.   Despite the looming threat, the Bangladesh Petroleum Corporation (BPC) maintains that refined oil supplies are "safe" until June, as they are sourced from Malaysia, China, and Singapore, bypassing the Strait of Hormuz. However, the BPC Chairman, Md. Rezanur Rahman, admitted they are "closely monitoring" the crude oil situation. Petrobangla Director (Operations) Engr. Md. Rafiqul Islam echoed these concerns, stating that while they are monitoring the situation 24/7, a closure of the Qatari shipping route remains a major cause for anxiety. Energy Minister Iqbal Hassan Mahmood, has called an emergency meeting to discuss the crisis. "We are monitoring the situation and planning to explore alternative import sources to ensure Bangladesh does not fall into an energy vacuum," the Minister told reporters. Industry leaders, including East Coast Group Chairman Azam J. Chowdhury, have urged the government to establish advanced communications with alternative suppliers like Indonesia and Malaysia to mitigate the risk.  

Iran’s military tested new attack drones in the coastal area of the Gulf of Oman and near the strategic Strait of Hormuz Saturday as part of its ongoing annual drill, state TV reported. Meanwhile, antigovernment protests underway for over three months continued. Videos on social media showed protests in Tehran’s grand bazaar and several cities and towns including in the Kurdish area. Part of Tehran’s bazaar closed in the wake of the protests which authorities cracked down on. State TV said the Ababil-5 attack drone was used during wargames for the first time and successfully hit its target with a bomb after traveling 400 kilometers (250 miles). Iran has tested many other military drones over the past decade. The military drones have been a point of contention between Iran and the United States and its allies, which claim Tehran is supplying Moscow with drones that have been used in attacks in West-backed Ukraine. In November, Iran acknowledged it has supplied Russia with drones, adding that the supply came before Moscow’s war in Ukraine. Iran says it is committed to stopping the conflict. Read more: White House: Iran set to deliver armed drones to Russia The Strait of Hormuz is located at the mouth of the Persian Gulf and is crucial to global energy supplies, with about a fifth of all oil traded at sea passing through it. Commandos and airborne infantry participated in the wargames, dubbed “Zolfaghar-1401,” along with fighter jets, helicopters, military transport aircraft and submarines. Iran’s military will fire missiles and air defense systems as well. Iran regularly holds such drills to improve its defensive power and test weapons. Since mid-September, Iran has been shaken by antigovernment protests which were ignited by the death of a woman who was detained by the country’s morality police. The demonstrations rapidly escalated into calls for an end to more than four decades of the country’s clerical rule. Read more: Iranian troops in Crimea supporting Russian drone attacks, says US More than 500 protesters have been killed and over 18,500 people have been arrested, according to Human Rights Activists in Iran, a group that has closely monitored the unrest. Iranian authorities have not released figures for those killed or arrested.

The largest ship in the Iranian navy caught fire and later sank Wednesday in the Gulf of Oman under unclear circumstances, semiofficial news agencies reported. The Fars and Tasnim news agencies said efforts failed to save the support ship Kharg, named after the island that serves as the main oil terminal for Iran. Read: Iran successfully tests domestic coronavirus vaccine on humans The blaze began around 2:25 a.m. and firefighters tried to contain it, Fars said. The vessel sank near the Iranian port of Jask, some 1,270 kilometers (790 miles) southeast of Tehran on the Gulf of Oman near the Strait of Hormuz — the narrow mouth of the Persian Gulf. Photos circulated on Iranian social media of sailors wearing life jackets evacuating the vessel as a fire burned behind them. State TV and semiofficial news agencies referred to the Kharg as a “training ship.” Fars published video of thick, black smoke rising from the ship early Wednesday morning. Satellite photos from Planet Labs Inc. analyzed by The Associated Press showed the Kharg off to the west of Jask on Tuesday. Satellites from the U.S. National Oceanic and Atmospheric Administration that track fires from space detected a blaze at the site of the Jask that started just before the time of the fire reported by Fars. Read: Iran a key topic as US envoy Blinken meets UK counterpart The Kharg serves as one of a few vessels in the Iranian navy capable of providing replenishment at sea for its other ships. It also can lift heavy cargo and serve as a launch point for helicopters. The ship, built in Britain and launched in 1977, entered the Iranian navy in 1984 after lengthy negotiations that followed Iran’s 1979 Islamic Revolution. Iranian officials offered no cause for the fire aboard the Kharg. However, it comes after a series of mysterious explosions that began in 2019 targeting ships in the Gulf of Oman. The U.S. Navy later accused Iran of targeting the ships with limpet mines, timed explosives typically attached by divers to a vessel’s hull. Read: US Navy fires warning shots in new tense encounter with Iran Iran denied targeting the vessels, though U.S. Navy footage showed members of Iran’s Revolutionary Guard removing one unexploded limpet mine from a vessel. The incidents came amid heightened tensions between the U.S. and Iran after then-President Donald Trump unilaterally withdrew America from Tehran’s nuclear deal with world powers. The sinking of the Kharg marks the latest naval disaster for Iran. In 2020 during an Iranian military training exercise, a missile mistakenly struck a naval vessel near the port of Jask, killing19 sailors and wounding 15. Also in 2018, an Iranian navy destroyer sank in the Caspian Sea.