[🇧🇩] Iran, US- Israel War: It's Impact On Bangladesh

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Iran war may impact growth, spur inflation in Asia and Pacific: ADB

The conflict in the Middle East (West Asia) could lower economic growth in developing Asia and the Pacific by up to 1.3 percentage points over 2026-2027 and raise inflation by 3.2 percentage points if energy market disruptions last more than a year, according to new research by the Asian Developmen

thefinancialexpress.com.bd

Iran war may impact growth, spur inflation in Asia and Pacific: ADB

UNB
Published :
Mar 26, 2026 18:49
Updated :
Mar 26, 2026 18:49

The conflict in the Middle East (West Asia) could lower economic growth in developing Asia and the Pacific by up to 1.3 percentage points over 2026-2027 and raise inflation by 3.2 percentage points if energy market disruptions last more than a year, according to new research by the Asian Development Bank (ADB).

The conflict affects economies in Asia and the Pacific through higher energy prices, supply chain and trade disruptions, and tighter financial conditions. Tourism and remittances could also be impacted.

The ADB brief released on Thursday outlines three risk scenarios indicating that effects on the region’s developing economies will depend largely on the duration of disruptions.

Under a short-lived conflict, energy price pressures would ease relatively quickly. More prolonged disruptions would lead to larger and more persistent impacts on growth and inflation.

Adverse effects on growth will be most severe for economies in developing Southeast Asia and the Pacific, with inflation rising highest in South Asian economies.

The scenarios reflect the high degree of uncertainty around how the conflict and the associated disruptions will evolve, and should be treated with caution.

In addition to higher energy prices, they account for broader supply chain disruptions and a global tightening of financial conditions.

ADB Chief Economist Albert Park said that Prolonged energy disruptions could force economies in developing Asia and the Pacific to navigate a difficult trade-off between weaker growth and higher inflation.

“Governments should focus on containing market stress and protecting the most vulnerable, while adopting policies to improve longer-term resilience.”

The brief presents four key policy responses as follows:

Fistly, Policies should focus on stabilization rather than suppression of price signals. Allowing higher energy prices to pass through, at least in part, can encourage energy conservation, fuel switching, and investment in alternative energy sources.

Broad price controls or generalized subsidies risk distorting incentives, delaying adjustment, and misallocating resources.

Secondly, Fiscal support, where needed, should be targeted and time-bound. Priority should be given to supporting vulnerable households and the most affected industries.

Well-targeted measures can cushion the social impact of higher prices while containing fiscal costs and preserving incentives to adjust to the shock.

Thirdly, Central banks should focus on limiting excessive market volatility while keeping a close watch on inflation expectations.

The priority should be to provide targeted liquidity support to preserve orderly market functioning.

Tightening policy too aggressively risks amplifying growth headwinds and exacerbating financial volatility.

While some tightening may be warranted, anchoring inflation expectations with effective central bank communication will remain key.

Finally, Governments should curb energy demand where feasible. Practical measures include temperature mandates to limit air-conditioning, cuts to non-essential lighting, peak-hour electricity-saving campaigns, and work-from-home or staggered schedules.

Incentivizing public transport use and car-free days in urban areas on public holidays can also help reduce transport fuel use.​

 

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Bangladesh receives no communication from Iran on access to Hormuz

For some countries that we identified as our friends, we allowed passage through the Strait of Hormuz. We allowed China, Russia, India, Iraq, and Pakistan to pass: Iran’s FM…

www.newagebd.net

Bangladesh receives no communication from Iran on access to Hormuz
Staff Correspondent 26 March, 2026, 19:59

Bangladesh has received no official communication from Iran on access to the Strait of Hormuz although media reports claim that Iran keeps the strategically vital shipping route open for India, Pakistan and several other ‘friendly countries’ amid US-Israeli war on Iran.

A senior foreign ministry official told New Age on Thursday that the Iranian ambassador in Dhaka Jalil Rahimi Jahanabadi in a recent meeting with state minister Shama Obaed Islam at her office assured that Bangladeshi oil tankers.

The official said that Dhaka could not reach Tehran directly over the matter amid joint attacks by the United States and Israel on Iran and Tehran’s retaliatory strikes on Israel and the US bases across the Arab states in the West Asia beginning from February 28.

The United News of Bangladesh reported on Thursday that Bangladesh was been named among several ‘friendly nations’ whose vessels might be allowed safe passage through the Strait of Hormuz, as Iran said the crucial maritime route remains partially open despite the ongoing war.

In a notable diplomatic development, Iran has indicated that ships linked to a number of countries, including Bangladesh can still transit the strategically vital Strait of Hormuz under coordinated arrangements.

The narrow waterway, which carries around one-fifth of the world’s oil shipments, has been under tight Iranian control since the United States and Israel launched attacks on Iran last month.

In an Interview with Iranian State TV, Iran’s foreign minister Abbas Araghchi rejected claimed that the strait was completely closed, saying controlled passage continued.

‘For some countries that we identified as our friends, we allowed passage through the Strait of Hormuz. We allowed China, Russia, India, Iraq, and Pakistan to pass,’ Tasnim News Agency of Iran quoted Aragchi to have said in the interview.

‘There is no reason for us to allow our enemy to pass through the Strait of Hormuz,’ he said.

UNB, however, reported that Bangladesh was included in the list of the countries to have access to the strait.City & Local Guides

‘Many of the shipowners, or the countries that own these vessels, have contacted us and requested that we ensure their safe passage through the strait. For some of these countries that we consider friendly, or in cases where we have decided to do so for other reasons, our armed forces have provided safe passage,’ Araghchi said, according to a report by Reuters.

‘You have seen on the news: China, Russia, Pakistan, Iraq, and India. Two of its ships passed through a few nights ago, and some other countries, and even Bangladesh, I believe. These are countries that spoke with us and coordinated with us, and this will continue in the future as well, even after the war,’ he added.

Araghchi also indicated that vessels linked to countries seen as adversaries or those involved in the ongoing conflict would not be allowed passage.

‘We are in a state of war. The region is a war zone, and there is no reason to allow the ships of our enemies and their allies to pass through. But it remains open to others,’ he said on Wednesday.

Shipping through the route has dropped sharply amid the conflict.

Following US and Israeli strikes on Iran and Tehran’s retaliatory actions, access to the strait has been significantly restricted.

The channel, which usually handles around 120 vessels daily, has seen traffic plunge by about 95 per cent in March, according to shipping data, with only a handful of crossings recorded in recent days.​