NEW DELHI: Bangladesh is facing a major economic shock due to the disruption in oil and gas supplies through the Strait of Hormuz in the wake of the Iran war, as the country is heavily dependent on imports for its energy needs, according to an article in the local media.
Years of relying on imported energy, along with slow progress toward renewable alternatives, have tied the economy to volatile global currents. When those currents turn turbulent, the exposure is immediate and unforgiving.
The global energy market appears to be becoming more volatile. Brent crude oil prices have surged to $114.81 per barrel, with further increases expected if disruptions persist. The cost of LNG has also increased significantly in the spot market ($23-$28 per mmBtu). These have implications not only for electricity generation but also for fertiliser, transportation, etc. (IANS)
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