The pre-Eid optimism at the Dhaka Stock Exchange (DSE) proved short-lived as the market witnessed a sharp downturn today, with investors rattled by rising global geopolitical tensions and their potential economic fallout at home.

Trading resumed after the weeklong holidays with heavy selling pressure dominating the session, as concerns over inflation, possible fuel price hikes, and energy supply disruptions linked to the ongoing Middle East crisis dampened sentiment.

The uncertainty triggered a broad-based decline across sectors, wiping out nearly Tk9,000 crore in market capitalisation in a single day – an indication of weakening investor confidence.

The benchmark DSEX index fell by 68 points, or 1.28%, to close at 5,284. The decline was even steeper among blue-chip stocks, with the DS30 index shedding 39 points, or 1.91%, to settle at 2,011. Market breadth remained decisively negative, with 243 issues declining against 121 gainers, while 27 stocks remained unchanged.

Despite the significant drop, trading activity was subdued. Daily turnover stood at Tk492 crore, reflecting a cautious stance among investors who appear to be adopting a wait-and-see approach amid persistent uncertainties.

Market analysts attributed the bearish trend largely to macroeconomic concerns exacerbated by global developments.

Analysts say the market's near-term direction will largely depend on developments in global energy markets and the government's ability to manage domestic inflationary pressures. Until greater clarity emerges, investors are likely to remain cautious, limiting fresh capital inflows into an already volatile market.

According to EBL Securities, the market slipped into negative territory from the opening bell as the initial festive enthusiasm quickly faded. The brokerage noted that fears of energy shortages and inflationary pressures stemming from the Middle East tensions overshadowed any positive sentiment.

Although the market attempted a modest recovery during mid-session trading, it failed to sustain momentum, closing firmly in the red.

A more detailed assessment by BRAC EPL Stock Brokerage highlighted the potential sectoral impact of escalating tensions involving the United States, Israel, and Iran. The report suggested that manufacturing, cement, and power sectors are likely to face immediate pressure due to their heavy reliance on imported fuel and raw materials.

These sectors are confronting a dual challenge. Rising global prices of furnace oil and liquefied natural gas (LNG) are expected to squeeze profit margins, while the risk of industrial load-shedding and higher transportation costs – driven by a so-called "Gulf risk premium" – could disrupt production cycles.

Gulf risk premium refers to extra cost added to oil prices or shipping and insurance rates due to geopolitical tensions in the Gulf region. It reflects perceived risk of supply disruption from major producers such as Saudi Arabia, Iran, Iraq and Kuwait.

The BRAC EPL analysis also pointed out that export-oriented readymade garment (RMG) companies with strong financial positions may benefit marginally if they can position themselves as reliable suppliers amid global uncertainty. However, this advantage will depend on their ability to absorb higher freight and insurance costs without losing competitiveness.

In contrast, the banking and telecommunications sectors were identified as relatively resilient. Banks may benefit from increased trade finance activities and higher interest income, while telecom companies are often considered defensive investments during periods of restricted mobility. Nonetheless, these sectors were among the major contributors to Tuesday's decline.

Key index draggers included BRAC Bank, Robi Axiata, Grameenphone, Square Pharmaceuticals, Walton Hi-Tech Industries, and Islami Bank Bangladesh, all of which weighed heavily on the indices.

Sector-wise, the banking sector led turnover with a 15.5% share, followed by pharmaceuticals at 12.8% and engineering at 11.5%. Among individual stocks, ACME Pesticides Limited topped the turnover chart, alongside City Bank PLC and Sea Pearl Beach Resort and Spa Limited.

All major sectors ended in negative territory. The banking and telecommunications sectors recorded the steepest declines, each falling by 2.45%. Non-bank financial institutions dropped 1.88%, followed by food and allied at 1.18% and fuel and power at 1.14%.

Amid the widespread losses, the mutual fund sector emerged as a rare bright spot, posting a 6.55% gain. Several funds delivered strong returns, offering some relief to investors.

The bearish sentiment extended to the Chittagong Stock Exchange, where the CSCX index declined by 47 points to 9,118 and the CASPI fell by 75 points to 14,954. Turnover at the port city bourse remained modest at Tk18.79 crore.

Bangladesh's ambitions to enter the electric vehicle (EV) manufacturing space took a step forward as Runner Automobiles partnered with the Chinese BYD Company on a potential local production venture.

Shanat Datta, chief financial officer of Runner Automobiles, told The Business Standard that an agreement was signed on Tuesday (24 March) between the two companies in China. Under the agreement, Runner will conduct a feasibility study for the local production of all BYD EV and non-EV vehicles.

Earlier, the decision was approved at a Runner board meeting on 20 March, where the company authorised signing a master supply and manufacturing agreement with the Shenzhen-based EV giant. The collaboration is expected to pave the way for local vehicle production, technology transfer, and increased industrial capacity in Bangladesh.

Company officials said the initiative is still at an early stage. CFO Datta said a comprehensive feasibility study will determine key aspects such as investment size, funding sources, plant construction, implementation timeline, and partnership structure. A detailed plan is expected by April.

"Our main goal is to manufacture BYD-branded cars in the country," he said, adding that the company will design and develop the necessary factory infrastructure to support production, following the rules and regulations.

The move comes as Bangladesh maintains high import duties on vehicles, making locally assembled or manufactured cars significantly more competitive. Recent policy support has further strengthened the case for localisation.

In the 2025-26 fiscal year budget, the National Board of Revenue reduced the duty and tax burden to around 33% for locally produced electric or hybrid vehicles meeting certain investment and value-addition thresholds. In contrast, imported electric and plug-in hybrid cars currently face duties as high as 89%.

The government has also been actively promoting EV adoption, targeting a 30% electric vehicle market share by 2030. Incentives for battery technologies, including lithium and graphene, have been introduced to support this transition.

BYD is one of China's leading clean energy firms, known for EVs, batteries, and renewable solutions. Founded in 1994, it has grown into a global EV powerhouse, competing with companies like Tesla. BYD produces cars, buses, and trucks, while also manufacturing advanced lithium batteries.

The company is expanding rapidly across Asia, Europe, and Latin America, playing a key role in the global transition to sustainable transportation.

The announcement by Runner had an immediate impact on the stock market, with its share price rising 9.97% to Tk37.50 on the Dhaka Stock Exchange.

Industry insiders say Runner has been preparing for such a venture. In May 2025, the company acquired land in Sreepur, Magura, and near its existing facility in Bhaluka, Mymensingh, with plans to establish a vehicle manufacturing plant in collaboration with a foreign partner.

Runner already has experience in automotive production, having invested around Tk300 crore to manufacture Bajaj three-wheelers. It also markets a range of international brands, including Eicher trucks and buses, KTM motorcycles, and Vespa scooters, alongside its own two-wheeler line-up.

Despite its diversified portfolio, the company has faced profitability challenges. It reported a loss of Tk1.41 crore in the second quarter (October-December) of the current fiscal year, although overall first-half profits stood at Tk2.93 crore. Revenue during the July-December period rose 31% year-on-year to Tk592.18 crore, driven by strong growth in truck, pickup, and tractor sales.

Filling stations across the country received far less supplies than required as prolonged bank closures during Eid-ul-Fitr disrupted fuel distribution from depots, leaving motorists grappling with long queues and intermittent shortages.

Officials from Bangladesh Petroleum Corporation (BPC) and pump owners say the seven-day banking holiday from 17 to 23 March created a critical bottleneck in the fuel supply chain.

During the period, filling station owners were unable to issue pay orders – a prerequisite for lifting fuel from depots – effectively halting regular distribution.

Without access to banking services, dealers found themselves unable to procure fuel even as demand surged ahead of and during the Eid holidays.

While the government maintained that there was no actual shortage of fuel, pump owners said they were getting inadequate supplies, exposing them to chaotic scenes and even threats from frustrated customers.

Reports from major cities indicated that pumps were facing acute supply shortage of octane–- primarily used by cars and bikes.

BPC officials said supply disruptions were linked to delays in issuing pay orders, noting that in previous long holiday periods, authorities had instructed selected bank branches to remain open to facilitate emergency transactions for fuel dealers.

This time, however, the absence of such arrangements worsened the situation.

Compounding the problem, global supply uncertainties – particularly disruptions in the Strait of Hormuz over the Middle East war – have also affected external fuel sourcing.

Bangladesh meets its entire petrol demand from local processing of condensate, a gas by-product, while around 60-65% of octane demand is met domestically, with the remainder dependent on imports. The external disruptions prompted BPC to adopt a cautious approach in releasing fuel.

Despite the visible strain at retail points, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku dismissed concerns of an actual shortage, attributing the current situation to panic buying.

"There is no shortage of fuel in the country," the minister said while speaking to reporters at the Secretariat in Dhaka yesterday. "However, people have started purchasing more than they actually need, causing filling stations to run out of stock earlier than usual."

However, pump owners paint a different picture, pointing to reduced allocations and logistical challenges. Nazmul Hoque, president of the Bangladesh Petrol Pump Owners Association, told TBS that many stations are receiving significantly less fuel than required.

"I am receiving half of what I demand. Panic buying and supply constraints have made the whole situation messy," said Nazmul, who operates Ramna Petrol Pump, adding that the bank closures further deepened the crisis by preventing the timely issuance of pay orders.

The situation appears particularly acute in Chattogram, where multiple filling stations reported sharp declines in supply, especially of octane.

At the Shamanta CNG filling station in the Chandgaon Bahir Signal area, monthly allocations dropped drastically. The station, which previously received eight fuel tankers per month from Jamuna Oil Company Limited, is now getting only one tanker per week.

"Our main crisis is the lack of normal oil supply from Jamuna," said station manager Hasan Tarek. "We are currently unable to supply octane. The stock we received before Eid ran out quickly, and supply has been suspended for three consecutive days."

Similar complaints were echoed at various other petrol pumps in the port city.

Meanwhile, the impact on commuters and drivers was severe. "No octane" signs were common at many stations, while others were rationing fuel.

Absar Hossain, a motorist waiting near the Gani Bakery area, described his ordeal: "I have been searching since last evening but couldn't find octane anywhere. Even when I did, they wouldn't give more than a small amount."

Ride-share driver Abdur Rahman said the shortage has directly affected his income during what should have been a peak earning period. "I had to stand in line for more than half an hour, and still couldn't get enough fuel to operate properly," he said.

A widespread shortage of petrol and octane disrupted fuel supply across the country. Reports from Rajshahi, Dinajpur, Bogura, Savar, and Ashulia revealed that most pumps remained closed.

Security fears

Meanwhile, the Bangladesh Petrol Pump Owners Association on Sunday warned that fuel stations across the country may shut down due to mounting security concerns and an ongoing fuel supply shortage.

The association said petrol pumps nationwide are facing a "critical situation" as the daily fuel allocation from companies is insufficient to meet growing consumer demand.

The organisation alleged that the issue of security in fuel marketing has been largely overlooked by the government and local administration, leading to increasing disorder at pump stations.

Citing recent incidents, the association said that despite having around 10,500 litres of petrol and an equal amount of octane at one pump ahead of Eid, and about 8,000 litres at another, the stock was depleted within a short period due to excessive pressure and chaotic situations.

Describing the situation as a form of "looting," the association claimed that some individuals are purchasing fuel multiple times a day and reselling it at higher prices.

In some cases, motorcyclists were reportedly refuelling up to 10 times daily, while others repeatedly returned with partially filled tanks, depriving genuine customers.

The association also alleged that organised groups have been forcibly opening pumps at night and taking fuel.

Referring to an incident in Thakurgaon, it said miscreants armed with sticks looted fuel during supply operations.

Gold prices steadied on Tuesday after ​falling nearly 2 percent earlier in the session, as investors weighed conflicting signals on ‌a potential de-escalation in the US-Israeli war on Iran, and its impact on the outlook for inflation and interest rates.

Spot gold was up 0.1 percent at $4,411.28 per ounce as of 1104 GMT, after falling to $4,097.99 per ​ounce in the previous session, its lowest since November 24.

US gold futures for April ​delivery added 0.1 percent to $4,412.70.

SOME STABILITY FOR NOW

“The market is in a wait-and-see position. Considering that oil prices are a bit lower, this is reducing these rate hike ​expectations somehow and that’s giving some stability to the gold price now,” said UBS analyst ​Giovanni Staunovo.

International Brent crude prices plunged 13 percent on Monday after Trump ordered a five-day delay to attacks on Iran’s power plants, but traded moderately higher on Tuesday as Iran denied it had talks with the ​United States to end the war in the Gulf.

The rise in energy prices caused by ​the war has increased inflation concerns and made higher interest rates globally more likely. While gold is ‌considered an inflation hedge, high interest rates reduce the non-yielding asset’s appeal, and the metal has fallen around 18 percent since the war began.

Iran launched waves of missiles at Israel on Tuesday, the Israeli military said.

San Francisco Federal Reserve Bank President Mary Daly said on Monday that unless the Iran ​conflict is resolved quickly ​and the Fed can “look through” a temporary increase in oil prices, it is unclear what the central bank’s next move on interest rates will need to ​be.

However, analysts say there are broader factors that should still support gold ​prices this year.

“Structural drivers for the gold rally over the recent years, debt issues, political pressure on the Fed to cut rates, high inflation, low interest rates, and a weaker dollar, these factors are still ​there. Nothing has changed on that side,” Staunovo added.

Elsewhere, spot silver rose 0.9 percent to $69.77 per ounce. Spot platinum added 1.3 percent to $1,906.80 and palladium lost 1 percent to $1,419.25.

Oil rose on Tuesday as the world’s ‌biggest supply disruption persisted and as Iran denied it had talks with the US to end the war in the Gulf, contradicting US President Donald Trump who said a deal could be reached soon.

Crude futures ​had dropped more than 10 percent on Monday, after Trump ordered a five-day ​delay to attacks on Iran’s power plants, saying the US had talks with unnamed Iranian officials that produced “major points of agreement”.

Brent futures rose $1.83, or 1.8 percent, to $101.77 ​a barrel at 1130 GMT. US West Texas Intermediate (WTI) climbed $2.21, or 2.5 percent, to $90.34.

The war ​has all but halted shipments of about one-fifth of the world’s oil and liquefied natural gas through the Strait of Hormuz, causing what the International Energy Agency has called the biggest-ever oil supply disruption.

“The reality ​on the ground is unchanged,” said Nikos Tzabouras, analyst at Jefferies-owned Tradu.com. “The Strait of ​Hormuz remains effectively closed and supply disruptions linger, tightening the market.”

Iran on Tuesday sent waves of missiles ‌into Israel. Three senior Israeli officials, speaking on condition of anonymity, said Trump appeared determined to reach a deal, but that they thought it highly unlikely that Iran would agree to US demands in any new round of negotiations.

“The Iran conflict sees tentative de-escalation, but unresolved ​risks remain around Hormuz,” ​BCA Research said in a report. “Given continued attack risks and headline volatility, it remains too early to position aggressively for lower oil prices.”

If the strait ​remains effectively shut until the end of April, Brent could still ​reach $150 a ⁠barrel, Macquarie said. That would exceed the all-time high of $147 set in 2008.

In the latest attacks on energy infrastructure across the region, a gas company office and a pressure-reduction station ⁠were ​hit in the Iranian city of Isfahan, while a ​projectile struck a gas pipeline feeding a power station in Khorramshahr, Iran’s Fars news agency reported.

Dhaka is set to host one of South Asia’s largest pharmaceutical manufacturing exhibitions as the 17th Asia Pharma Expo 2026 and Asia Lab Expo 2026 open at the Bangladesh-China Friendship Exhibition Centre in Purbachal from March 29 to 31.

Organised by the Bangladesh Association of Pharmaceutical Industries (BAPI), the three-day event continues a 23-year legacy of promoting innovation, collaboration, and industrial advancement in the country’s fast-growing pharmaceutical sector, according to a press release.

More than 400 companies from over 20 countries are expected to participate, showcasing technologies in pharmaceutical processing and packaging, active pharmaceutical ingredients (APIs) and excipients, laboratory and analytical instruments, cleanroom and HVAC systems, water management, and turnkey project solutions.

Following the inauguration, the exhibition will remain open to trade visitors throughout the three days, offering opportunities for sourcing, networking, technology assessment, and business expansion.

The organisers expect this year’s edition to build on the momentum of the 2025 expo, which drew around 14,500 trade visitors.

The upcoming event aims to deepen international engagement and facilitate technology transfer within Bangladesh’s expanding pharmaceutical manufacturing ecosystem.

Since its launch in 2003, Asia Pharma Expo and Asia Lab Expo have positioned themselves as dedicated platforms covering the full pharmaceutical manufacturing supply chain.

The exhibitions bring together entrepreneurs, researchers, and corporate decision-makers to explore advancements in machinery, raw materials, packaging, and laboratory technologies.

Bangladesh’s pharmaceutical industry has emerged as a key contributor to the national economy, meeting about 98 percent of domestic demand and exporting medicines to 157 countries, including the United States, the United Kingdom, Germany, and Canada.

Valued at more than $3.5 billion, the sector is projected to exceed $6 billion by 2026, with an annual growth rate of 15 to 18 percent.

Remittance inflow witnessed a year-on-year growth of 7.4%, reaching $2,828 million in the first 23 days of March, according to the latest data from Bangladesh Bank issued today (24 March).

Last year, during the same period, the country's remittance inflow was $2,633 million.

During the period from July to 23 March of the current fiscal year, expatriates sent remittances of $25,281 million, which was $21,123 million during the same period of the previous fiscal year, it added.

Gold prices ticked down on Wednesday, as investors weighed the ‌risk of a more hawkish US Federal Reserve policy stance, with high oil prices increasing concerns over renewed inflation pressures.

Spot gold fell 0.4 percent at $4,986.79 per ounce as of 0915 GMT. US ​gold futures for April delivery fell 0.3 percent to $4,990.70.

“Investors are worried about rates ​staying ‘higher-for-longer’ due to elevated energy prices ... the longer the Iran conflict goes on, the more likely that scenario,” making non-yielding gold less attractive, ​said Jamie Dutta, market analyst at Nemo.money.

The Middle East conflict is in its ​third week, as Iran targeted Tel Aviv with missiles in what it said was retaliation for Israel’s assassination of Iran’s security chief Ali Larijani, Iranian state television reported on Wednesday.

Brent crude oil ​prices eased slightly, but held above $100 per barrel, as escalation in the Iran conflict ​and the ongoing closure of the Strait of Hormuz offset some relief to supply concerns.

Elevated oil prices ‌add to inflationary pressures by pushing up transport costs. While gold is viewed as a hedge against inflation and uncertainty, high interest rates curb its appeal by raising the cost of holding bullion and boosting returns on yield-bearing assets.

The Fed is widely ​expected to hold ​rates steady for ⁠a second straight meeting when it announces its policy decision later in the day.

Investors are also awaiting remarks from Fed chair Jerome ​Powell to assess the central bank’s policy view for the ​rest of ⁠2026, with futures markets seeing only one quarter-percentage-point rate cut this year, in September, and another cut in late 2027.

“Long-term drivers like central bank buying, stagflation risks and ⁠diversification ​demand still remain. That should mean higher (gold) prices ​by end of 2026,” Dutta added.

The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington's latest step to stem a supply crisis over the Middle East war.

The authorization allows for the delivery and sale of Iranian crude oil and other petroleum products loaded onto ships before March 20, and will last through April 19, the Treasury said in a statement.

The move by the Office of Foreign Assets Control, which Treasury Secretary Scott Bessent had said Thursday was under consideration, follows a similar lifting of sanctions on Russian oil at sea.

Iran's de facto blockade of the Strait of Hormuz, through which 20 percent of the world's oil and gas normally flows, and the numerous attacks on energy infrastructure in the Middle East, have sent crude oil prices soaring.

Bessent described the move in a statement Friday as a narrowly tailored, short-term authorization that follows President Donald Trump's intention to "maximize the flow of energy to the world" and ensure market stability.

"At present, sanctioned Iranian oil is being hoarded by China on the cheap," Bessent said in a statement.

"By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran."

Tehran, however, said Friday it had no surplus crude oil to offer to international markets.

"Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US treasury secretary's statement is solely aimed at giving hope to buyers," Iranian oil ministry spokesman Saman Ghoddoosi wrote on X.

The Treasury's authorization on Friday does not apply to deliveries of oil to Cuba, North Korea or Russian-occupied areas of Ukraine.

Oil markets ended higher Friday, although they remained below the $120-per-barrel threshold which has been approached multiple times since the conflict began three weeks ago.

A barrel of North Sea Brent crude gained 3.26 percent to $112.19. Its US counterpart, the traditionally cheaper West Texas Intermediate (WTI), rose 2.27 percent to $98.32.

The war in the Middle East could see the world face its worst energy crisis in decades, International Energy Agency chief Fatih Birol warned on Monday (23 March), describing the situation as "very severe".

"Many of us remember the two consecutive oil crises in the 1970s... at that time, in each of the crises, the world has lost about five million barrels per day, both of them together, 10 million barrels per day," Birol told the National Press Club in Australia's capital.

"As of today, we lost 11 million barrels per day, so more than two major oil shocks put together," he said.

Oil prices fell by 7% today (23 March) after US President Donald Trump said he would postpone any military strikes against Iranian power plants for five days after constructive talks, hours ahead of a deadline that threatened further escalation in the conflict now in its fourth week.

Brent crude futures were down 9.72% at $101.28 a barrel at 1254 GMT after sliding as much as 14.5% to a session low of $96. US West Texas Intermediate was down almost 8.9% at $89.49 after losing 14.2% to a session low of $84.37.

Prices gradually pared some losses after the steep initial slide after Iran's Tasnim ⁠news agency reported that no talks were under way between the US and Iran.

The US President had warned on Saturday that Iranian power plants would be destroyed if Tehran failed to "fully open" the Strait of Hormuz to all shipping within 48 hours, setting a deadline of around 7:44 p.m. EDT (2344 GMT) on Monday.

His comments sparked threats of retaliation from Iran's Revolutionary Guards, which said they would attack Israel's power plants and those supplying US bases across the Gulf region if Trump followed through with his threat to "obliterate" Iran's power network.

The war has damaged major energy facilities in the Gulf and nearly halted shipping through the Strait of Hormuz, which handles about 20% of global oil and liquefied natural gas flows.

Analysts have estimated a loss of 7 million to 10 million barrels per day of Middle East oil production.

The crisis in the Middle East is worse than ‌the two ⁠oil shocks of the 1970s put together, Fatih Birol, executive director of the International Energy Agency, said on Monday.

"Oil sentiment may lurch on threats and rhetoric in the near term, but its more durable direction will continue to be shaped by the state of Middle East oil flows," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Iraq has declared force majeure on all oilfields developed by foreign oil companies, three energy officials said, while oil production at ⁠Basra Oil Company has been cut to 900,000 bpd from 3.3 million bpd, Iraqi Oil Minister Hayan Abdel-Ghani said in a ministry statement.

The supply crunch has led to a temporary waiving of US sanctions on Russian and Iranian oil already at sea. Indian refiners plan to resume buying Iranian oil while refiners elsewhere in ⁠Asia are examining such a move, traders told Reuters.

Meanwhile, Russia's Baltic Sea port of Ust-Luga resumed oil loadings after a drone attack alert was lifted, industry sources said, while neighbouring Primorsk remained shut after air strikes, adding to global shortages.

Libya's El Feel oilfield has been in shutdown since ⁠Thursday after state oil company National Oil Corporation (NOC) used its pipeline to transport crude from the Sharara field after its pipeline was damaged by fire, two El Feel engineers said.

Production is expected to resume in a week to 10 days, one of the engineers said.

Remittance inflows rose sharply in the first two weeks of March ahead of the Eid-ul-Fitr, despite tensions in the Middle East stemming from the US-Israel war on Iran.

Expatriates sent home $2.2 billion in the first 14 days of March, up 36 percent from $1.62 billion during the same period last year, according to Bangladesh Bank (BB) data.

Bankers expect remittances to exceed $3 billion by the end of the month, as expatriates typically send more money home during Eid. Full data for the month will be available after the Eid holidays.

In February, remittances stood at $3.02 billion.

In the current fiscal year, inflows have remained strong.

Between July and March 14, remittances reached $24.65 billion, marking a 22.6 percent year-on-year growth.

However, industry insiders and economists warn that inflows may slow in the coming months due to the Middle East crisis.

A BB quarterly report also projected a possible slowdown in remittances amid migration disruptions and economic uncertainty in the region.

The escalating tensions in the Gulf have already driven up prices of oil, liquefied natural gas, fertiliser and sulphur, as Iran controls the Strait of Hormuz, a key route for about one-fifth of global oil exports and nearly one-third of fertiliser shipments.

During March 1-14, Islami Bank Bangladesh handled the highest inflow at $395 million, followed by BRAC Bank with $228 million, state-run Agrani Bank with $165 million, and Trust Bank with $163 million.

The steady rise in remittances is helping ease pressure on the balance of payments and stabilise the foreign exchange market.

Under the International Monetary Fund’s calculation method, reserves were $29.64 billion, up from $19.74 billion in the same period last year.

However, signs of volatility have emerged in the foreign exchange market after more than a year, with the taka weakening against the US dollar since early March amid rising uncertainty over the war in the Middle East.

Bangladesh Bank (BB) has instructed banks, mobile financial service providers, payment service providers and payment system operators to establish a dedicated “Cashless Bangladesh Unit” at their head offices by March 31 to accelerate digital transactions nationwide.

The central bank issued a circular in this regard on Monday, aiming to reduce dependence on cash and expand digital payment services to customers at the grassroots level under the broader Cashless Bangladesh initiative.

As per the directive, each bank must establish a full-fledged unit supervised by a deputy managing director or an equivalent official linked to payment system operations.

For mobile financial service providers, payment service providers and payment system operators, the unit will be supervised by an official directly below the managing director.

Each bank must establish a full-fledged unit supervised by a deputy managing director or an equivalent official linked to payment system operations
Banks must assign at least four officials to the unit, while MFS, PSP and PSO operators must appoint at least two officials.

The central bank said Bangla QR and Bangladesh’s digital payment ecosystem have expanded significantly in recent years through interoperable digital payment infrastructure, mobile financial services, internet banking, point-of-sale terminals and online payments.

According to the circular, the unit will prepare and implement institution-specific roadmaps for expanding digital payments, accelerate merchant onboarding through Bangla QR channels, and regularly monitor customer registration in institution-owned mobile applications.

The unit will also oversee staff training, awareness campaigns, seminars, customer protection measures, complaint resolution and risk mitigation related to digital transactions.

In addition, institutions have been asked to submit annual implementation reports to their boards and send copies to BB by the last working day of March each year.

The government has decided to increase fuel imports by 25% in the course of the current year to tackle potential supply disruptions caused by the ongoing conflict in the Middle East, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said today (23 March).

"Despite global concerns over fuel supply, there is no immediate crisis in Bangladesh. As a precautionary measure, the government has decided to raise fuel imports by 25%," Iqbal told reporters at his residence in Dhaka in the afternoon.

The minister said vessels carrying sufficient fuel supplies are arriving at ports, and the government is maintaining strict vigilance to ensure uninterrupted distribution across the country.

Highlighting the government's subsidy efforts, the minister said fuel is being purchased at higher prices from the spot market but sold to consumers at lower rates.

"The duration of the conflict remains uncertain, the government will continue providing subsidies for as long as possible, considering people's purchasing capacity," he added.

Referring to disruptions in global supply routes, Iqbal noted that oil shipments through the Strait of Hormuz are facing challenges. "Ships are unable to move normally through the Strait of Hormuz and require special permissions, which is causing some disruptions to regular supply."

On fuel reserves, the minister said stock levels are being managed based on demand, and uninterrupted supply has so far prevented any major crisis.

Urging the public to remain calm, he called on consumers to avoid panic buying. "Please refrain from panic buying. Purchase only what you need. Panic buying is increasing pressure on depots and fuel stations."

Meanwhile, visits to several fuel pumps in the capital found vehicles waiting in long queues for fuel, while some stations were temporarily shut after running out of stock due to increased demand: further fuelling public anxiety.

The dollar rose today (23 March) as escalating retaliatory threats in the Middle East conflict curbed risk appetite and lifted demand for safe-haven assets.

The Australian dollar, ​a liquid proxy for global sentiment, slid as equities sold off across Asia. Japan's top currency diplomat said his government is ready ‌to take action to counter foreign-exchange volatility as the yen edged lower.

Hopes for an off-ramp to hostilities dimmed over the weekend, with US President Donald Trump threatening to strike Iran's electricity grid and Tehran vowing to hit back at infrastructure of its neighbours. The head of the International Energy Agency (IEA) said the crisis is worse than the two oil shocks of the ​1970s put together.

"The market's going with the idea that those countries and economies that enjoy a positive supply shock from energy are likely to ​perform better than those that are suffering from a negative supply shock," Rodrigo Catril, a currency strategist at National ⁠Australia Bank, said on a podcast.

"So you're seeing the euro and the yen struggling to perform. And again, if this conflict proves long-lasting, you would think ​that those are the currencies that are likely to suffer a bit more."

The dollar index , which measures the US currency against a basket of peers, rose 0.29% ​to 99.83. The gauge on Friday closed out its first weekly decline since the start of the war, as the inflationary effects of surging oil prices prompted central banks to turn hawkish.

The euro sank 0.38% to $1.1526, as the yen weakened 0.22% to 159.55 per dollar. Sterling weakened 0.37% to $1.329.

The conflict broadened today, with Israel announcing wide-scale strikes on Tehran, ​while Saudi Arabia said two ballistic missiles had been launched at Riyadh.

Trump issued his latest threat to Iran on Saturday, less than a day after ​signaling the US might be considering winding down the conflict. Iran pledged retaliatory strikes on infrastructure in nearby countries and that the Strait of Hormuz shipping lane for oil would remain ‌closed.

The prospect ⁠of tit-for-tat strikes on civilian infrastructure in the region threatens the livelihoods of millions of people who rely on desalination plants for water.

With the yen weakening back toward the key 160 per dollar level, Japan's top currency diplomat Atsushi Mimura signaled caution about speculative activity in oil markets spilling over into foreign exchange.

Speaking in Sydney, IEA Executive Director Fatih Birol warned that the current crisis poses a major threat to the global economy, surpassing the Middle East energy shocks of ​the 1970s.

Major equity indexes across Asia tumbled, ​with Japan's Nikkei down as much ⁠as 5% at one point. Inflation concerns hit global debt markets, with Japanese government bonds falling sharply, and the 10-year U.S. Treasury yield rising to a near eight-month high of 4.415%.

Before the U.S.-Israeli war on Iran began in late ​February, investors had priced in two cuts by the Federal Reserve this year. But even one cut is now ​considered a distant ⁠prospect, and other major central banks are turning more hawkish.

"If markets price a U.S. tightening cycle, the USD will lift strongly against all currencies in our view," Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, wrote in a note. "AUD would fall against most, if not all, major currencies if global downgrades occur."

The ⁠European Central ​Bank kept rates on hold on Thursday, but warned of inflation driven by energy prices. The ​Bank of England also kept rates steady, while the Bank of Japan left the door open to a hike as soon as April.

The Australian dollar sank 0.95% versus the greenback to $0.6956, while New ​Zealand's kiwi weakened 0.7% versus the greenback to $0.5793.

In cryptocurrencies, bitcoin jumped 0.76% to $68,704.51, while ether rose 0.16% to $2,061.87.

Bangladesh's state-run Petrobangla has sought an additional US$350-million loan guarantee from the World Bank to augment LNG imports amid escalating Middle East tensions and soaring global fuel prices.Loan guarantee services

"We have requested the Economic Relations Division (ERD) to expedite the funding to facilitate the buying of liquefied natural gas (LNG) from global suppliers," Petrobangla's director of finance, AKM Mizanur Rahman, told the Financial Express on Tuesday.

"Initially our plan was to seek an additional $250 million but later decided to seek more to meet the growing need," he said.

The fresh fund request would add up to an existing $350-million guarantee facility, totaling fund support from World Bank's concessional lending arm -- International Development Association (IDA) -- to $700 million for the country's energy-security programme, he said.

The government's move is a part of a strategic shift to ensure the country's energy-supply chain strong amid volatile global energy market against the backdrop of dwindling domestic natural gas output, Rahman said.

Bangladesh already purchased five LNG cargoes from spot market at very high prices.

Bangladesh's payment against the import of LNG has become easier from early 2026 with the World Bank's loan guarantee worth $350 million, which was approved last year, to facilitate its import.World Bank reports

The World Bank's Board of Executive Directors approved late June last year the 'Energy Sector Security Enhancement Project,' worth $350 million to help Bangladesh import LNG to improve the country's overall gas supply, he said.

The project aims to improve Bangladesh's gas- supply security by facilitating access to affordable financing for LNG import. It will use an IDA guarantee to mobilise up to $2.1 billion in private capital over the next seven years to support LNG imports, according to Rahman.

Petrobangla has selected eight local and foreign commercial banks to facilitate the import of LNG, backed by the repayment guarantee from the World Bank, to provide financial support for LNG imports, he said.

The selected banks have formed a consortium to provide Petrobangla with a stand-by letter of credit (SBLC) worth $200 million, valid for up to 12 months, in favor of long-term LNG suppliers under existing sales and purchase agreements (SPAs), he said.

They are offering an additional SBLC worth US$50 million, valid for up to 90 days, for spot LNG suppliers under master sales and purchase agreements (MSPAs).

In addition, the banks provide a US$100-million credit line in the form of short-term loans with up to a 12-month tenure to help Petrobangla meet payment obligations for specific LNG cargoes under the SPAs and MSPAs, Mr Rahman said.Banking services comparison

The IDA, the World Bank's soft-lending arm, will guarantee Petrobangla's repayment obligations to the banks for loans and SBLC draws, covering up to $350 million in principal and accrued interest.

However, the guarantee will not cover penalties, default interest, or similar charges, Rahman added.

The IDA guarantee is expected to enhance Petrobangla's credit profile, enabling it to secure LNG supplies more effectively amid mounting foreign-currency constraints, said the Petrobangla official.

The World Bank has noted that LNG now accounts for over a quarter of Bangladesh's total gas consumption, with imports costing around $4.5 billion annually.

Approximately 42 per cent of the country's gas is consumed by the power sector, making LNG- supply disruptions a major risk to electricity generation and overall economic activity, it said.

Since LNG imports began in 2018, Bangladesh has imported around 35.59 million tonnes of LNG through 571 cargoes as of January 2026, according to official data from Rupantarita Prakritik Gas Company Ltd (RPGCL).

With domestic gas reserves rapidly depleting, Bangladesh is expected to need 30 million mt of LNG per year by 2041 to meet surging demand, according to official data of Petrobangla.Bangladesh economic news

The corporation projects that by 2041, daily gas demand could reach 8 Bcf/d, significantly higher than the current supply of around 2.45 Bcf/d as of March 17, 2026.

Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports, as the new government led by Prime Minister Tarique Rahman moves to stabilise the economy amid a worsening global energy outlook due to the Iran war.

The nation of 175 million relies on imports for about 95% of its energy needs, and state-run agencies have increasingly turned to the volatile market to plug the gap. The government has been rationing fuel, though the restrictions were eased for the Eid al-Fitr festival.

Rashed Al Mahmud Titumir, the prime minister's adviser on finance and planning, said on Friday that Dhaka was in talks with major development lenders — including the Asian Development Bank, the World Bank, the International Islamic Trade Finance Corporation and Asian Infrastructure Investment Bank — to mobilise fresh funding.

"There are positive indications that we'll receive funds from the multilateral agencies to support oil and energy, which will help accelerate economic growth," Titumir told Reuters.

He said he expected about $1.3 billion from the International Monetary Fund under an existing programme, along with an additional $250 million to $500 million on top of roughly $500 million in budgetary support from the ADB.

"An IMF team is visiting... they were waiting for an elected government. We will request them to release the funds now, instead of July, so we receive them within the current fiscal year," he said.

The urgency has grown amid an escalating conflict in the Middle East that has roiled global energy markets, pushed up prices and increased concerns about supply routes.

"Our financing flow for oil and energy must not be disrupted under any circumstances," Titumir said. "We will ensure financing is available and diversify our sources of oil and energy."

He said Bangladesh was exploring procuring additional supply from the United States, Southeast Asia, Nigeria and producers in the Middle East, to avoid over‑reliance on a single source.

Despite rising global prices, Dhaka does not plan to pass the burden on to consumers, he said.

"We are not increasing fuel prices. We will provide the necessary financing so there is no contraction in the economy," Titumir said, stressing that the government aims to rely on multilateral support rather than private‑sector borrowing.

Bangladesh adjusts government‑set fuel prices each month, based on a global pricing formula.

Remittance inflows to Bangladesh reached $2.2 billion in the first two weeks of March 2026, according to data from Bangladesh Bank.

The total includes inflows through state-owned, specialised, private and foreign commercial banks.

State-owned commercial banks brought in $372.49 million, with Agrani Bank leading the group at $164.52 million. Janata Bank followed with $129.92 million, while Sonali Bank contributed $63.08 million.

Specialised banks received $272.88 million, entirely through Bangladesh Krishi Bank.

Private commercial banks accounted for the largest share, bringing in $1.55 billion. Islami Bank Bangladesh topped the list with $395.29 million, followed by BRAC Bank with $228.24 million and Trust Bank with $162.53 million.

Foreign commercial banks contributed the least, with a total of $4.54 million. Standard Chartered Bank led this category, bringing in $3.37 million.

The UN Committee for Development Policy (UN CDP) is preparing a "crisis assessment" report, evaluating Bangladesh's request to delay graduation from the Least Developed Country category by three years, which is expected to be released within March, according to officials from the Economic Relations Division (ERD).

The officials said the committee will examine whether Bangladesh is facing an actual economic or structural crisis. If the CDP finds evidence of such a crisis, it may recommend extending the country's LDC graduation by three years. The recommendation would then be forwarded to the UN Economic and Social Council for consideration.

Proposals of this nature are usually approved through consensus within the economic council. However, if any member state vetoes, the matter could be put to a vote. Officials in the economic relations said the government has already asked the foreign ministry to begin diplomatic outreach and lobbying efforts to secure support from UN member states for the proposed delay.

A CDP delegation may visit Bangladesh in April and they are expected to present the findings of a readiness study conducted earlier at Bangladesh's request. However, officials said the visit will not directly influence the final decision, as the crisis assessment report will be the main factor.

The final decision could come in September during the UN General Assembly session. If the proposal is approved at that stage, Bangladesh will get three more years before formally graduating from the LDC.

For now, policymakers keep an eye on the upcoming assessment report, as its recommendations will determine the next steps.

However, a high-level meeting of the government on LDCs is scheduled to be held on 5 April, with the finance minister in the chair, where the "Crisis Assessment" report will be evaluated.

Under the current schedule, Bangladesh is set to graduate from the LDC group on 24 November this year. The third and final review process ahead of graduation is already underway.

Soon after taking power, on 18 February, the government sent a letter to CDP Chair José Antonio Ocampo seeking a three-year deferral of the graduation until November 24, 2029.

In the letter, Bangladesh noted that although it continues to meet the three graduation criteria – gross national income per capita, the Human Assets Index, and the Economic and Environmental Vulnerability Index — the five-year preparatory period has been severely disrupted by a series of global and domestic shocks.

The government cited the lingering impacts of the COVID-19 pandemic, the Russia-Ukraine war, tensions in the Middle East, tight global financial conditions, and the slow recovery of international trade.

On the domestic front, it highlighted irregularities in the financial sector, the change in government following the July 2024 uprising, and the ongoing pressure of hosting displaced Myanmar nationals.

According to the letter, these shocks have led to macroeconomic instability, slower GDP growth, high inflation, and a decline in both public and private investment. It also pointed to mounting pressure on foreign exchange reserves, reduced imports of capital machinery and raw materials, and slower job creation due to weakened investment.

Against this backdrop, the government said its policy focus had shifted toward short-term stabilisation and crisis management, preventing effective utilisation of the preparatory period.

The letter also raised concerns about post-graduation trade risks, including the potential loss of preferential market access for ready-made garment exports to the European Union and the risk of possible countervailing duties from the United States.

Considering the crisis, Bangladesh has requested a three-year extension to stabilise the economy and complete priority actions under its Smooth Transition Strategy.

Officials added that beyond the issues mentioned in the letter, the ongoing conflict across the Middle East could pose additional risks for Bangladesh. Rising military tensions involving the United States, Israel, and Iran have heightened instability in the region.

A prolonged conflict could fuel inflation and disrupt macroeconomic stability, further strengthening the case for deferring LDC graduation by three years.

Stakeholders warn that extended tensions among the US, Israel, and Iran could exert multidimensional pressure on Bangladesh's economy. There are concerns over rising energy import costs, given the country's heavy reliance on oil and gas imports from the Middle East. Escalating conflict could drive up global energy prices, increasing electricity generation and transportation costs.

Additionally, a large number of Bangladeshi workers are employed in countries such as Saudi Arabia, Qatar, Oman, and the United Arab Emirates. Heightened regional instability could shrink labour markets and create income uncertainty.

There are also fears of increased transportation costs for exports. Rising tensions in the Red Sea or the Strait of Hormuz could push up marine insurance and shipping costs, affecting key export sectors, including ready-made garments. Higher energy and import costs would also increase demand for US dollars, putting further pressure on foreign exchange reserves, experts say.

The Cabinet today (17 March) approved Bangladesh's proposal to join the 'Investment Facilitation for Development Agreement (IFDA)' under the plurilateral Joint Statement Initiative of the World Trade Organization (WTO).

The decision was made at a Cabinet meeting held at the Secretariat, chaired by Prime Minister Tarique Rahman.

Cabinet Secretary Nasimul Ghani told reporters that the agreement aims to facilitate foreign direct investment (FDI) in Bangladesh.

He said the pact does not impose any new obligations regarding market access or investor-state dispute settlement. Instead, it seeks to enhance transparency in investment procedures, simplify registration and approvals, reduce unnecessary multiple applications, and maintain a database of domestic investors.

The government expects that joining the agreement will further boost Bangladesh's international reputation as an attractive destination for foreign investment.