The ongoing war in Iran has created widespread economic disruptions across Asia, with energy shortages and rising fuel costs affecting millions of people and key industries. Bangladesh, heavily dependent on imported fuel, has experienced significant supply disruptions as the conflict impacts global energy markets.

In Dhaka, ride-share driver Tariqul Islam, 53, exemplifies the personal toll of the crisis. The father of four has seen his income sharply reduced as he spends hours waiting in fuel lines, sometimes forcing him to remain idle for entire days. "My family was managing fairly well through ride-sharing," Islam said. "But after the fuel shortage began, I would buy fuel one day and run the bike for two days. As a result, I had to sit idle for one day, which reduced my income."

The energy disruptions have strained Bangladesh's broader economy, with authorities implementing austerity measures including fuel rationing, restricted shopping mall hours, and shutdowns of fertilizer factories to divert gas to power plants. The government faces an estimated additional $1.07 billion in LNG subsidies for the April-June quarter alone if global prices remain elevated. The World Bank projects Bangladesh's growth will slow to 3.9% in the fiscal year ending June 2026.

Bangladesh's crucial garment industry, which employs around 4 million workers and generates approximately $39 billion annually, has been particularly affected. Export shipments have declined between 5% and 13% in recent months, according to Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries. Factory output has dropped 30% to 40% while business costs have risen 35% to 40%.

The crisis reflects broader regional vulnerabilities, as much of Asia relies on fuel imports passing through the Strait of Hormuz, a critical chokepoint for about one-fifth of global oil and natural gas trade. The Asian Development Bank cut its growth forecast for developing Asia and the Pacific to 4.7% for 2026, citing war-driven energy disruptions. Regional governments are seeking alternative supply sources, with Bangladesh turning to India, which has diversified its fuel sources including purchases from Russia.