Chattogram Port has recorded robust growth in cargo and container handling in the first nine months of the fiscal 2025-26, but operational bottlenecks, labour unrest and a decline in global ranking are raising concerns over its long-term competitiveness.

A comparative performance report for the first nine months of FY26 shows the port handled 104.29 million tonnes of cargo, marking a 7.39% year-on-year growth.

Container throughput also rose, reaching 2.57 million TEUs, up 4.75% from the same period a year earlier.

A report for the first nine months of the 2026-2027 fiscal year shows that the country's premier seaport handled 104.29 million tonnes of cargo, a 7.39% increase from the previous year. Container handling also grew to 2.57 million TEUs [Twenty-foot Equivalent Unit], up 4.75% from the same period.

Efficiency gains drive performance

Average vessel turnaround time has improved significantly, dropping from about eight days to 2.53 days, which allows the port to handle more ships.

In October 2025 alone, the port handled a record 391 vessels, a 16.02% increase year-on-year. Overall, vessel handling in the first nine months stood at 3,230 ships, up 5.62%.

CPA Secretary Refayet Hamim said, "Automation and digitalisation have been key. Systems like e-gate passes, terminal operations, digital billing, and the "CPA Sky" platform have reduced paperwork, yard congestion, and clearance time—sometimes to just 30 minutes."

"The implementation of pre-arrival processing has further streamlined customs clearance, enabling faster unloading and delivery of goods", he said.

He also said, "Another notable achievement has been the return to zero waiting time at the outer anchorage, allowing vessels to berth without delay – a development that significantly cuts logistics costs."

Khairul Alam Sujan, former vice president of the Bangladesh Freight Forwarders Association and a former director of the Bangladesh Shipping Agents Association, said there remains room for improvement.

He noted that narrowing the gap between the CPA and the Customs Authority would speed up services for users and improve overall port efficiency.

He also called for the swift, full rollout of automation and digitalisation systems.

Growth backed by economic recovery

The increase in cargo handling is mainly due to higher imports of fuel, wheat, and industrial raw materials. This has been supported by a more stable economy and fewer US dollar shortages than before.

In October 2025, cargo handling recorded a 21.11% increase, while container growth surged in August and September with gains of 20.10% and 10.22% respectively.

Even during the Eid-ul-Fitr vacation, the port continued its operations. In just one week in March this year, it handled 2.5 million tonnes of cargo and 55,000 TEUs, ensuring supply chains remained intact.

Structural limits still a concern

Despite the growth, port users say ageing infrastructure and equipment shortages are limiting its full potential.

The New Mooring Container Terminal, the port's busiest facility, saw a 12-14% increase in efficiency after being handed over to Chittagong Dry Dock Limited in July 2025.

However, disputes over leasing out the terminal to a foreign operator triggered labour unrest, disrupting operations and raising concerns among stakeholders.

Bangladesh Garment Manufacturers and Exporters Association Director SM Abu Tayub said consistent service is essential for any port, warning that even minor disruptions create difficulties for users.

He added that the CPA must ensure uninterrupted, reliable services at all times.

Ranking slip rings alarm bells

The port dropped one position to 68th in the global Lloyd's List ranking, which analysts see as a warning sign.

A recent decision to raise tariffs has raised concerns, with questions about whether higher costs could hurt the port's competitiveness.

Rakibul Alam Chowdhury, a former vice president of BGMEA, said the tariff hike has raised the cost of doing business and eroded competitiveness, warning that it could affect future business volumes and reduce the port's cargo handling.

Investment key to future growth

Port users say sustained foreign investment, modern technology adoption and a stable labour environment will be critical for regaining global standing.

They also stress that modernising the port is essential not just for attracting foreign investors, but also for encouraging domestic investment in trade and industry.

Amirul Houque, a former director of the Chittagong Chamber of Commerce and Industry and managing director of Seacom Group, said investment is crucial for port development, but it must be rational and well justified.

He also stressed the need to improve the skills of port workers to boost efficiency.

The Bangladesh Securities and Exchange Commission (BSEC) has banned three audit firms and four auditors from auditing listed companies for several years after they failed to audit the financial reports of two listed firms properly.

In separate orders issued on April 23, the commission banned Mahfel Huq & Co Chartered Accountants, Ata Khan & Co Chartered Accountants, and Shiraz Khan Basak & Co Chartered Accountants. It also banned four auditors who are current or former partners of these firms.

The action comes amid long-standing criticism that auditors often go unpunished despite failing to detect irregularities in listed firms. As a result of inaccurate financial reporting, many investors were misled into buying shares and later suffered significant losses.

All three audit firms failed to properly audit the financial reports of Ring Shine Textiles for three separate years, according to BSEC.

During the pre-IPO period, Ring Shine Textiles distributed shares free of cost through a private offer, which was described as a clear act of forgery. The company also issued stock dividends to shareholders who had not paid for their shares. These allotments increased its paid-up capital without any actual money being received.

Later, in 2019, the company raised Tk 150 crore from the stock market to buy machinery and repay bank loans.

However, none of these irregularities was reported by the auditors.

MAHFEL HUQ & CO

Mahfel Huq & Co was banned for three years for failing to properly audit the financial statements of Ring Shine Textiles for the year which ended on June 30, 2018.

The audit did not provide reasonable assurance that the financial statements showed a true and fair view of the company’s financial position and performance, as required under auditing and reporting standards.

An enquiry committee formed by the BSEC found major irregularities in key items such as assets, retained earnings, and net profit. It also found that the firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence.

As a result, BSEC barred the firm from auditing any listed securities for three years from the date of the order.

The firm was also banned for one year for failing to properly audit Fareast Islami Life Insurance for 2018. A special audit found material irregularities, inadequate disclosures, and deficiencies in the financial reports, leading to the suspension.

In addition, Md Abdus Sattar, a former partner of the firm, was prohibited from auditing any listed securities issuer for five years.

Md Abu Kaiser, another former partner, was barred for two years.

ATA KHAN & CO

Ata Khan & Co faced action after a BSEC inquiry committee found material irregularities and anomalies in key financial statement items, including the assets and net profit of Ring Shine Textiles for the year ended June 30, 2019.

The firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence to support the reported figures.

It, along with its engagement partner, was found jointly and severally responsible for failing to conduct the audit in line with securities laws, resulting in financial statements that did not present a true and fair view of the company’s position and performance.

As a result, Ata Khan & Co was barred from inclusion in the BSEC auditors’ panel for three years, while Maqbul Ahmed, a partner of the firm, was barred from the panel for five years.

SHIRAZ KHAN BASAK & CO

Shiraz Khan Basak & Co audited Ring Shine Textiles for the year ended June 30, 2020, with Ramendra Nath Basak serving as the engagement partner, although he was not enlisted in the BSEC auditors’ panel.

A BSEC inquiry committee found material irregularities and anomalies in key financial statement items. The firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence to support the figures in the financial statements.

The audit failed to ensure that the financial report presented a true and fair view in line with International Financial Reporting Standards. The firm and its engagement partner were found to have failed to comply with securities laws.

As a result, Shiraz Khan Basak & Co was made ineligible for inclusion in the BSEC auditors’ panel for three years, while Ramendra Nath Basak was barred from the panel for five years.

The Daily Star emailed all the audit firms on Monday, but received no response before the report went to print. It also tried to contact Wasequl H Reagan, a partner of Mahfel Huq & Co, through phone calls and text messages, but he did not respond.

A shortage of soybean oil that began in early March shows little sign of easing, pushing retail prices above the government fixed rate, with customers now paying up to Tk 15 more per litre.

The government has set the price of a one-litre bottle at Tk 195. However, retailers across the country are charging between Tk 200 and Tk 210.

Small shopkeepers, supermarket chains and wholesalers say they are receiving less than half of their usual daily demand for the cooking staple, most of which Bangladesh imports.

Refiners have not said clearly whether they have reduced supply. However, official data show soybean oil imports fell sharply in the January-April period compared with the same period last year.

Refiners say global prices and freight costs have increased, but authorities have yet to approve their proposal to raise local rates. They say it is no longer possible to import and sell the product at a loss.

Nurul Alam Sikder, a shopkeeper in Dhaka’s Pallabi area, said he last received bottled soybean oil from dealers about three weeks ago. Dealers are saying that there is a supply shortage, so they are unable to provide it.

Firoj Alam, manager of retail chain Daily Shopping, which has 115 outlets nationwide, said bottled soybean oil has not met demand since the beginning of April.

Currently, only about 30 percent to 40 percent of the required amount is being supplied, said Alam.

Speaking on condition of anonymity, a senior official at another supermarket chain said importers have failed to supply enough bottled soybean oil since the last week of February. At present, only 25 percent to 30 percent of the required supply is available.

The official said many customers are returning empty-handed when they come to buy oil. They are expressing frustration with them over not being able to get it.

Abu Bakar Siddique, an edible oil wholesaler at Karwan Bazar, one of Dhaka’s largest kitchen markets, said the squeeze has also cut dealer commissions because the maximum retail price has not increased.

DEALERS CUT BACK SUPPLIES

During a visit to kitchen markets in Chattogram yesterday, it was found that 1 litre and 2 litre bottles were available at some shops, while 3 litre and 5 litre bottles were largely missing from shelves.

Retailers were selling bottled soybean oil at Tk 5 to Tk 7 above the maximum retail price printed on the packaging. Traders say they are receiving less than 20 percent of their usual supply.

Abul Hashem, a retailer in the port city, said limited deliveries from distributors have disrupted sales and forced them to ration stock.

Hashem said retailers are not receiving edible oil in line with demand. Dealers said their commission has also been reduced.

“As a result, we are buying oil at Tk 1 to Tk 2 higher than the maximum retail price printed on the bottle. If we do not add at least Tk 5 per litre, we incur losses,” he added.

In Sylhet, retailers reported a similar picture.

Ashis Das, a retailer at Bagbari area, said, “Dealers have stopped providing supplies for over a week. Wholesalers in Kalighat are also almost out of stock, so we are having to run our shops without oil.”

Another retailer, Kapil Ray, said, “No company has provided oil for several days. We have managed to source small quantities of oil from a wholesaler at the printed MRP. I am selling these to my regular customers without any profit just to maintain our relationship.”

A wholesaler in the same area, who asked not to be named, said supplies from the company depot are not even close to 20 percent of demand.

He said, “After paying the price in advance, we received only 300 litres of oil last Thursday. Today [Tuesday], we will receive another supply of 300 litres, but now with a condition to purchase an equal amount of bottled water.”

At Shaheb Bazar in Rajshahi, shopkeeper Sumon Hossain described the edible oil market situation as “very bad”.

“There is almost no supply now. Prices have also increased. We have to buy a two-litre bottle for Tk 388 and sell it for Tk 390. That is only Tk 2 profit on a two-litre bottle,” he said.

“On top of that, we have to send our own people to collect the oil from dealers because they do not deliver it. There are transport costs. Retailers are actually facing losses,” said Hossain.

Commerce ministry data show soybean oil imports fell sharply in the January-April period compared with the same period last year.

Soybean oil imports dropped from 4.48 lakh tonnes in January-April last year to just 2.61 lakh tonnes this year.

Importers say they cut shipments because domestic prices have not been adjusted in line with international rates. Selling at a loss is unsustainable, they say, despite repeated appeals to the current and previous interim government for a price increase.

World Bank commodities data show soybean oil sold at $1,154 per tonne in January. The price rose to $1,282 in February and to $1,482 in March.

The country’s annual demand for edible oil stands at 24 lakh tonnes, around 90 percent of which is met through imports, according to the Bangladesh Trade and Tariff Commission.

Mohammad Dabirul Islam Didar, head of finance and accounts at Bangladesh Edible Oil Limited, which markets Rupchanda brand soybean oil, said the company continues to sell bottled soybean oil at the maximum retail price and does not charge above it.

He said rising import and supply chain costs have put the company under pressure. It has applied to the Ministry of Commerce for a price adjustment to help maintain supply chain stability.

Didar said it is not possible to sustain operations at a loss. Discussions have taken place over possible VAT adjustments, but no action has been taken.

The Daily Star tried to contact Biswajit Saha, director of corporate and regulatory affairs at City Group, which markets the Teer brand of soybean oil, for comment but received no response.

A widening revenue shortfall is driving the government toward heavy bank borrowing, raising concerns over tighter credit availability for the private sector and mounting fiscal pressure in the coming years, the Bangladesh Economic Association (BEA) said.

“If the revenue gap persists, the trend [of government bank borrowing] could deepen further in FY2026-27, amplifying a ‘crowding out’ effect where government demand for funds limits lending space for businesses,” said the association.

The economists’ body raised the issue yesterday during a pre-budget discussion with the National Board of Revenue (NBR) officials at its headquarters in Dhaka.

BEA estimates that government borrowing from banks may reach around Tk 1 lakh crore in FY26. The amount could rise to Tk 1.1 to 1.3 lakh crore in FY27, with the deficit remaining at 4.5 to 5 percent of GDP.

As of February in the current fiscal year, the government borrowed Tk 88,309 crore from the banking system and Tk 4,033 crore from non-banking sources, according to Bangladesh Bank data.

The BEA also said the upcoming budget will face pressure from political commitments, including pay-scale adjustments, family card programmes, agricultural support, and social safety-net expansion.

“Ensuring food security and stabilising prices of essential goods will further strain fiscal space,” said Mohammad Masud Alam, member of the BEA.

He also warned that global energy market volatility, especially rising tensions in the Middle East, could push up oil prices, increase import costs, and add pressure on foreign exchange reserves, posing additional risks to macroeconomic stability.

Speaking about raising revenue, he suggested urgently designing a comprehensive framework to bring Bangladesh’s fast-growing digital economy under the tax net to boost the country’s tax-to-GDP ratio.

At the event, Mahbub Ullah, convener of the BEA, said the NBR should take stronger action against tax evasion in the real estate sector, in cases of wealth tax, and cases of underreporting family and personal wealth.

In response, NBR chairman Md Abdur Rahman Khan said they are working on this issue.

Ahad Al Azad Munem, research associate of the Policy Research Institute (PRI) of Bangladesh, said that currently, about 28 percent of total revenue comes from customs or trade taxes.

“Such a high dependence on trade taxes is not considered international best practice.”

The NBR chairman said that since the country’s overall revenue collection is low, whenever any reform or change is proposed in major revenue sources, the decision-makers become hesitant.

“This reality must be acknowledged.”

The Centre for Policy Dialogue (CPD) urged the NBR to ensure tax justice, protect low-income groups, and take stronger measures to prevent tax evasion.

The Anti-Tobacco Media Alliance (ATMA) has proposed merging the lower and medium cigarette tiers and setting the price of a 10-stick pack at Tk 100, Tk 150 for the higher tier, and Tk 200 for the premium category.

It also recommended adding a specific excise duty of Tk 4 per pack.

According to their proposal, this could generate around Tk 44,000 crore in additional revenue compared to the current fiscal year and potentially prevent nearly 400,000 premature deaths in the long term.

Business Initiative Leading Development (BUILD) proposed that the government provide clear direction about the separation of the tax policy and tax administration.

Besides, the NBR should look into the gap between the registered companies and actual return submission numbers, it said.

The Bangladesh Society for the Change and Advocacy Nexus (B-SCAN), a volunteer organisation, demanded raising the tax-free income for differently abled people to up to Tk 6 lakh from the existing Tk 5 lakh.

Bangladesh witnessed a spike in energy inflation during the January-March quarter of the current fiscal year 2025-26 (FY26), driven by gas price hikes, according to a Bangladesh Bank (BB) report published yesterday.

Energy inflation rose to 14.9 percent in the third quarter of FY26 from 14.4 percent in the previous quarter, the central bank said in its report titled Inflation Dynamics in Bangladesh.

The report said solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation.

However, inflation of solid fuels declined to 21.5 percent in the January-March period from 23.1 percent in the previous quarter. Gas inflation surged to 11.3 percent in the third quarter, rebounding from a 6.2 percent inflation in the preceding quarter.

Solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation
During the January-March period of FY26, inflation averaged 8.81 percent, up from 8.3 percent in the preceding October-December quarter, mainly driven by increased food prices, especially vegetables and spices.

However, protein-based foods remained the top contributor, accounting for 44.6 percent of overall food inflation, the report said.

The average contribution of vegetables to food inflation rose to 22.7 percent in the January-March period of this year. The contribution of cereal items to food inflation saw a notable decline, dropping to 8.1 percent from 41.4 percent in the previous quarter.

In contrast, non-food inflation remained broadly stable at a high level of approximately 8.9 percent.

During the quarter, the BB report said that the contribution of domestic items to inflation increased to 71.7 percent, while the share of import-concentrated items fell to 28.3 percent.

Despite a spike in inflation, the wage-price gap slightly narrowed compared to the previous quarter. “This narrowing was primarily driven by a decline in headline inflation rather than any significant improvement in wage growth,” the report said.

“Despite some positive momentum effects, wage growth remained sluggish throughout the quarter, as the negative base effect persisted,” it added.

Bangladesh Bank has eased rules for banks to award incentive bonuses to staff, provided that a few criteria are met.

According to a central bank circular issued yesterday, a bank’s boards of directors may approve up to one month’s basic salary as a bonus in recognition of “special achievements” during the year, even if the usual eligibility criteria are not met.

However, this discretionary payment will only be permitted if the institution records an operating profit. In addition, the bank must ensure that regulatory capital is maintained at least at the previous year’s level (excluding adjustments for deferred provisions approved by Bangladesh Bank) and that no fresh applications are made for deferred provisioning facilities.

Banks may approve up to one month’s basic salary as a bonus in recognition of “special achievements” during the year, even if the usual eligibility criteria are not met
Officials said the move aims to boost morale among officers and employees while preserving competitiveness in the banking sector. Meanwhile, Bangladesh Bank stressed that compliance with the outlined conditions is essential to ensure financial discipline and safeguard stability.

Cement manufacturers in the country are under growing pressure as the US-Israel war on Iran disrupts Middle Eastern supply routes, forcing them to import key raw materials -- especially clinker -- from Asian countries at higher prices.

The conflict has also increased freight costs, further raising overall import expenses. At the same time, weak domestic demand is preventing producers from passing on higher costs to consumers, leaving manufacturers squeezed between rising input costs and a fragile market.

The situation also highlights the sector’s heavy dependence on imported raw materials. Key inputs such as clinker, limestone, granulated slag, fly ash and gypsum are largely imported. Nearly 90 percent of clinker is brought from abroad.

“Bangladesh’s cement sector is under new cost pressure as clinker imports shift away from the Middle East,” said Mohammad Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh PLC.

“Earlier, imports were largely sourced from Gulf countries at competitive prices, but that advantage has now disappeared. The country is now increasingly relying on China, Vietnam and Thailand, where clinker is being imported at higher prices,” he added.

Chowdhury said the shift is linked to a widening geopolitical crisis following joint US–Israel strikes on Iran and Iran’s closure of the Strait of Hormuz, a key global trade route.

“This has cut shipping traffic, pushed up freight and insurance costs, increased logistics risks and war-risk premiums, and forced rerouting of shipments,” he said.

“The impact on Bangladesh’s cement industry has been immediate, as it depends heavily on imported clinker and stone aggregates.”

He added that clinker import costs have risen from about $42 to $43 per tonne to nearly $53 due to tighter supply and higher freight charges.

“With demand already weak, companies are struggling to pass on these costs, putting pressure on profit margins and forcing them to cut spending,” he said.

Md Abul Mansur, general manager of Royal Cement Ltd, echoed these concerns. “Sourcing raw materials has become increasingly difficult due to global disruptions. Clinker is no longer coming from the Middle East, while gypsum and limestone from Oman now face sharply higher freight costs,” he said.

He added, “Clinker prices have risen from around $43 per tonne to about $57 to $58 per tonne, while slag prices have increased from $16 to around $23 to $24 per tonne, driven by war-related disruptions in global shipping.”

Mansur linked the surge in freight costs to higher oil prices, increased insurance premiums and greater risks on maritime routes, saying shipping costs have effectively doubled.

He said the impact is already visible in the domestic market. Cement prices have increased by Tk 30 to Tk 50 per bag, even though actual costs have gone up by Tk 70 to Tk 80. Weak demand has prevented companies from passing on the full increase.

“Costs are rising, but the market is unable to absorb the full impact,” he added.

He also noted that construction activity has slowed as developers delay projects in hopes of greater stability, further affecting the industry.

The country’s broader construction sector is also under strain due to weak public spending, subdued private investment, policy uncertainty and rising costs. These factors have already dampened project approvals, demand and growth across real estate and related industries, including cement.

Mohammed Amirul Haque, president of the Bangladesh Cement Manufacturers Association and managing director of Premier Cement Mills PLC, said the sector has faced multiple shocks over the past five years, making business difficult.

He added that many companies are still operating despite losses in the hope of recovery, but warned that this situation is not sustainable.

He stressed the need for a profit margin and cautioned that sharp price increases could harm the market.

“A quick recovery is unlikely,” he added.

Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights.

The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights.

Airlines aren’t waiting for a lack of supplies to react.

“Travel alert: airlines are cutting thousands of flights right now,” Travel Therapy TV host Karen Schaler said in an Instagram reel this past weekend. “Book early.”

That advice would win the approval of Ryanair boss Michael O’Leary, who expressed concern earlier this month that fears of fuel shortages were making people put off booking flights.

Low-cost carriers -- which control a little more than a third of the global market, according to various estimates -- are feeling the pinch first due to the nature of their business model.

With cheaper tickets, they have less capacity to absorb the rise in fuel costs.

Some of the cancellations may be the normal adjustments airlines tend to make when demand doesn’t meet expectations on certain routes.

“It is not unusual for carriers to adjust their schedules at this time of the year,” financial analyst Dudley Shanley at investment bank Goodbody told AFP.

But “if jet fuel prices remain at this level, there will have to be a little bit more trimming for low-cost airlines”, he added.

If before the war airlines were able to maintain marginally profitable routes or even unprofitable routes, the surge in jet fuel prices will force them to make difficult choices.

That will start with many during the peak summer travel season.

“Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets,” the EU’s energy commissioner Dan Jorgensen told Sky News last week.

The speed with which airlines are reacting depends in part upon the extent to which they secured fuel supplies in advance at fixed prices.

European airlines tend to do this to a greater extent than their rivals in other parts of the world. Air Transat, a low-cost Canadian airline, has cut six percent of its May-October flight schedule.

Southeast Asia’s largest low-cost carrier, AirAsia X, announced on Friday it was cutting more flights and even some connections, without providing an overall figure.

Earlier this month the Malaysia-based no-frills airline said it was raising fares by up to 40 percent and about 10 percent of its overall flights had been cut so far.

Hungary’s low-cost airline Wizz Air has so far resisted cutting flights.

“We are not taking capacity out, because I think the other guys will take capacity out,” its chief executive Jozsef Varadi was quoted as saying recently by trade magazine Aviation Week.

“You don’t have to run faster than the bear, but faster than the guy next to you,” he added.

He may have been thinking of the most spectacular cuts made in the industry by German group Lufthansa, which had just announced it was chopping 20,000 flights from its schedule through October, along with halting its regional feeder airline CityLine.

Its European rival Air France-KLM has trimmed two percent of flights in May and June at its low-cost Transavia subsidiary.

KLM has kept cancellations down to one percent of its European flights.

Ryanair didn’t cite fuel prices but high costs and taxes when announcing last week it would reduce flights to and from Berlin starting in October.

It is also cutting 10 percent of flights from Dublin, criticising limited capacity at the airport.

Since the beginning of the month, Spain’s Volotea has trimmed nearly one percent of flights from its summer schedule.

A prognosis comes from the regulator that the prevailing high inflation may intensify further following fuel-price rises, which indicates pricey commodities could be pricier.

"….near-term inflationary pressures are expected to intensify due to higher global oil prices, domestic fuel-price adjustments, and ongoing energy-supply constraints," the Bangladesh Bank (BB) says in its latest report on Inflation Dynamics in Bangladesh January-March 2026. Bangladeshmarket analysis

The central bank's latest observation comes just nine days after the government raised domestic fuel prices in response to continued increases in global petroleum- product prices, underscoring mounting external cost pressures on the economy.

Officials and economists, however, says these cost-push factors are likely to transmit through higher transportation and production costs, potentially broadening price pressures across the supply chain and complicating efforts to anchor inflation expectations.

Bangladesh's headline consumer price index (CPI) inflation (y-o-y) continued to rise, averaging approximately at 8.8 per cent in the third quarter (Q3) of the current fiscal year (FY) 2025-26, up from 8.3 per cent observed in the previous quarter, according to the quarterly report released Tuesday.

"Fuel-price adjustments may trigger a one-off spike in inflation, which would then ease gradually over time," Md. Ezazul Islam, Director-General of Bangladesh Institute of Bank Management (BIBM), says while explaining to The Financial Express (FE) the potential economic impact of the latest fuel-price hike.

"Fuel-price adjustments have a multiplier effect on the economy, as fuel is a key input across all sectors," explains Dr. Islam, also a former executive director of the central bank. Economicanalysis reports

Talking to the FE, a BB senior official has said transport costs have already risen following the latest fuel-price adjustments, which may further add fuel to inflationary pressures on the economy. Energy inflation rose to 14.9 per cent in the third quarter of FY'26 from 14.4 per cent in the previous quarter.

On the other hand, food inflation edged up during the period under review, primarily driven by an increased contribution from vegetables and spices. However, protein-based foods remained the top contributor.

The central bank in its report says the increased contribution of protein-based food items, along with 'clothing and footwear', can be partly attributed to seasonal demand associated with Eid-ul-Fitr, which typically leads to higher consumer spending on food and apparel.

The average contributions of import-concentrated food items and domestic food items to headline inflation increased in the Q3 of FY'26 from the previous quarter.

On the other hand, the contribution of import-concentrated non-food items to inflation declined, according to the report.

Meanwhile, the wage-price gap narrowed slightly by the end of Q3 of FY'26 compared to the previous quarter, driven by a fall in headline inflation (y-o-y) to 8.7 per cent in March 2026, while wage growth remained stable at 8.1 per cent. This led to a modest deterioration in household purchasing power, reflecting sluggish real wage growth.

"Given these developments, sustained policy vigilance is essential to anchor inflation expectations, contain elevated food and core prices, and safeguard household purchasing power, thereby supporting a stable macroeconomic environment conducive to long-term, inclusive growth," the central bank notes in its report.

Finance Minister Amir Khosru Mahmud Chowdhury yesterday placed two amendment bills in the parliament proposing the removal of age limits for appointing the heads and members of two of the country’s key financial regulators.

The Bangladesh Securities and Exchange Commission (Amendment) Bill, 2026 seeks to abolish the existing maximum age limit of 65 years for appointing the chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC).

Also placed the same day, the Insurance Development and Regulatory Authority (Amendment) Bill, 2026 proposes scrapping the current age cap of 67 years for appointing the chairman and members of the Insurance Development and Regulatory Authority (Idra).

Placing the bills before the House, the finance minister recommended that they be sent to a special parliamentary committee for scrutiny, with a report to be submitted within one day.

In the statement of objectives and reasons, the minister said the proposed amendment to the securities commission law aims to make it more suitable for present circumstances by allowing the appointment of experienced, skilled and knowledgeable individuals to top positions.

Regarding the amendment to the Insurance Development and Regulatory Authority Act, 2010, he noted that the existing provision, which sets the maximum appointment age at 67 years, has limited the opportunity to recruit capable and experienced individuals to leadership roles in the insurance sector.

He argued that removing this restriction is necessary in the public interest to strengthen decision-making in the sector.

Earlier, on April 23, the cabinet approved the draft amendments to both laws.

The government needs to urgently design a comprehensive framework to bring Bangladesh’s fast-growing digital economy under the tax net to boost the country’s tax-to-GDP ratio, the Bangladesh Economic Association (BEA) said.

It warned that a large and expanding segment of income remains outside the formal revenue system.

The association placed the recommendation before the National Board of Revenue (NBR) during a pre-budget discussion at its headquarters in Dhaka.

The economists’ body said sectors such as e-commerce, freelancing, digital advertising, and streaming services are growing rapidly but remain either fully or partially untaxed. This includes Facebook-based businesses, sellers on platforms like Daraz, freelancers on global marketplaces, and users paying for services such as Netflix and Spotify.

According to the BEA, the lack of a structured taxation regime is causing revenue losses and creating an uneven playing field between compliant businesses and largely untaxed digital operators.

It also flagged rising cross-border digital transactions, noting that firms like Google, Meta Platforms, and Amazon earn significantly from Bangladesh but contribute limited taxes.

The BEA proposed mandatory tax registration for foreign digital service providers and an automated withholding system through payment gateways to deduct tax or VAT at source.

It also recommended forming a specialised digital unit within the NBR to monitor cross-border transactions in real time, improve compliance, and reduce revenue leakages.

Prof Mahbub Ullah, convener of the BEA, and Mohammad Masud Alam, member of the committee, spoke at the event presided over by Md Abdur Rahman Khan, chairman of the NBR.

Oil prices rose nearly 3 percent on Tuesday, extending the previous session’s gains, as ‌efforts to end the US-Iran war appeared to have stalled, with the crucial Strait of Hormuz waterway still mainly shut, starving markets of key Middle East energy supply.

Brent crude futures for June climbed $2.99, or 2.76 percent, to $111.22 a barrel by 0758 GMT, after ​gaining 2.8 percent to close the previous session at its highest since April 7. The contract is ​up for a seventh straight day.

At their intra-day peak on Tuesday, Brent was up 3.4 percent on the day at $111.86 a barrel.

US West Texas Intermediate (WTI) crude for June rose $2.54, or 2.64 percent, ​to $98.91 a barrel, after gaining 2.1 percent in the previous session.

US President Donald Trump is unhappy with the latest Iranian ​proposal to end the war, a US official said on Monday, as Iranian sources disclosed that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved.

Trump’s displeasure with the offer leaves the conflict deadlocked, with Iran shutting shipping flows ​through the Strait of Hormuz, a conduit for about 20 percent of global oil and gas supplies, and the ​US retaining its blockade of Iranian ports.

“Oil above $110 per barrel reflects a market that is rapidly repricing geopolitical risk,” said ‌Rystad Energy ⁠analyst Jorge Leon.

“With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply,” he added.

“Even in a best-case scenario, any US–Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside ​risks to prices remain.”

An ​earlier round of negotiations between ⁠the United States and Iran collapsed last week after face-to-face talks failed.

Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due ​to the US blockade.

But a liquefied natural gas tanker managed by the United ​Arab Emirates’ Abu ⁠Dhabi National Oil Co crossed the Strait of Hormuz and appears to be near India, the on Monday.

Prior to the US-Israeli war on Iran, which began on February 28, between 125 and 140 vessels transited the strait ⁠daily.

The loss ​of about 10 million bpd of crude and products through Hormuz will continue ​to exceed falling consumption as inflationary pressures and demand destruction loom, PVM analyst Tamas Varga said, leading to an ever-tighter oil market ​balance.

Iran has offered to ease its restrictions on the Strait of Hormuz if the United States lifts its blockade and brings an end to the war, according to two regional officials familiar with the proposal.

The offer, reportedly conveyed to Washington through Pakistan, would postpone discussions on Iran's nuclear programme- an issue US officials insist must be part of any agreement.

US Secretary of State Marco Rubio signalled resistance to such a deal, saying any agreement must ensure Iran cannot develop nuclear weapons.

Despite a fragile ceasefire, tensions remain high over the strategically vital waterway, which handles about one-fifth of global oil and gas trade. Iran's restrictions and the US blockade have disrupted energy supplies, pushing oil prices sharply higher and straining global markets.

Brent crude prices have risen significantly since the conflict began, exceeding $108 per barrel yesterday (27 April).

The proposal comes amid growing international pressure to reopen the strait. Dozens of countries, in a joint statement led by Bahrain, called for restoring access, while UN Secretary-General António Guterres warned of mounting humanitarian and economic consequences.

German Chancellor Friedrich Merz criticised Washington's handling of the conflict, while French Foreign Minister Jean-Noël Barrot urged all sides to de-escalate, stressing that key maritime routes should remain open.

Meanwhile, Iran's Foreign Minister Abbas Araghchi met Russian President Vladimir Putin in St Petersburg, as diplomatic efforts continue to revive stalled negotiations.

Pakistan and other mediators are attempting to bridge the gaps between Tehran and Washington, but significant differences remain, particularly over Iran's nuclear ambitions and the conditions for lifting the blockade.

The conflict, which began on 28 February, has led to thousands of deaths across the region and continues to fuel instability despite ongoing ceasefire efforts.

India and New Zealand today signed a Free Trade Agreement in New Delhi under which New Delhi will get 100% duty-free access for some products and expanded market access for labour-intensive sectors of textiles, leather, footwear, engineering goods and processed food sectors.

India's farms, fisheries and factories will get zero-duty market access on 100% of exports.

On the other hand, India has offered market access in 70% lines covering 95% of New Zealand's trade with India.

To ensure protection to Indian farmers, rural economies and the domestic industry, market access for New Zealand under the agreement keeps out dairy, key agricultural products, coffee, milk, cream, cheese, yoghurt, whey, caseins, onions, sugar, spices, edible oils and rubber, an official statement said.

The agreement was signed by Indian Minister of Commerce and Industry Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McClay.

The FTA, wrapped up in about a year after the launch of negotiations on 16 March 2025, is expected to facilitate increased trade and investment flows by improving market access, reducing barriers, and establishing clear and predictable rules, said the statement.

It will support businesses of all sizes, including small and medium enterprises, ensuring wider distribution of the benefits of trade.

The signing ceremony brought together businesses and industry leaders from both countries, with Trade and Investment Minister Todd McClay leading a cross-party delegation of Members of Parliament and over 30 New Zealand businesses.

"The signing of the India–New Zealand Free Trade Agreement marks a new and significant chapter in the bilateral relationship, reflecting shared ambition, deepening engagement, and a commitment to mutually beneficial growth," said McClay.

He said the agreement "reflects a balanced, forward-looking, and practical outcome" and both sides will now work closely towards effective implementation and delivery of the agreement.

New Zealand is India's second-largest trading partner in the Oceania region, with bilateral trade valued at around $1.3 billion.

Goyal said this is India's ninth FTA in the past few years with 38 developed countries.

At the heart of the FTA with New Zealand is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services.

He said New Zealand has made an investment commitment of $20 billion in India.

The United Nations Conference on Trade and Development (UNCTAD), in a report, has identified five key priority reform areas for Bangladesh to strengthen its investment climate, enhance competitiveness, and support sustainable, investment-led growth in the years ahead.

The report highlights both progress and persistent challenges in Bangladesh's investment climate since the 2013 Investment Policy Review (IPR). While acknowledging important reforms, it stresses the need for deeper and more sustained structural changes—particularly as the country prepares to graduate from Least Developed Country (LDC) status.

It also underscores the importance of ensuring a smooth transition as Bangladesh faces the gradual withdrawal of preferential treatment under various international agreements, amid evolving global trade and geopolitical dynamics.

The United Nations Development Programme (UNDP), UNCTAD and the Investment Development Authority (Bida) jointly launched the UNCTAD Investment Policy Review (IPR) Implementation Report for Bangladesh at Bida building in the capital yesterday (27 April).

The high-level dialogue brought together senior government officials, private sector representatives, and development partners to discuss strengthening the country's investment framework in preparation for LDC graduation.

To strengthen the investment climate, the report outlines five priority reforms as below:

Firstly, the report calls for the development of a national investment policy alongside a consolidated investment law to bolster investor confidence and support a coordinated, whole-of-government approach to attracting and effectively utilising foreign direct investment (FDI) in line with national development objectives.

Secondly, the report put emphasis on enhancing investment promotion and facilitation to improve service delivery and attract higher-quality investments.

Thirdly, it focuses on sectors identified in the Foreign Direct Investment (FDI) Heatmap, recommending targeted interventions to drive growth and stronger institutional coordination to ensure alignment on sectoral priorities.

Fourthly, the report underscores the need for mitigating the effects of losing preferential Least Developed Country (LDC) status by engaging key trade and investment partners and strengthening the competitiveness of the domestic private sector in the post-LDC context.

And lastly, the UN report stresses on removing key bottlenecks to investment by improving access to land and infrastructure, which remain critical constraints for the potential investors.

The report also found that Bangladesh lags significantly behind its regional peers in attracting foreign direct investment (FDI). According to the findings, Vietnam's FDI stock is approximately 13 times higher than Bangladesh's, Indonesia's nearly 17 times higher, and Cambodia's about three times higher. This relatively low FDI stock highlights weaker inflows and several underlying structural constraints.

In 2024, Bangladesh's FDI stock stood at $18.29 billion, compared to $249.14 billion in Vietnam, $305.66 billion in Indonesia, and $52.66 billion in Cambodia, says the report.

Presenting the findings of the report, Legal Officer of UNCTAD's Investment and Enterprise Division Kiyoshi Adachi noted that most of the Investment Policy Review recommendations for Bangladesh have only been partially implemented.

"It is a somewhat subjective grading, but most recommendations fall into the partially implemented category," he said, adding that systematic tracking of progress remains essential.

He also highlighted weak inter-agency coordination, pointing to a mismatch between the sectors identified in Bida's FDI Heatmap—such as semiconductors, electric vehicle batteries, and technical textiles—and their reflection in the national industrial policy.

Adachi also noted that the Investment Act of 1980 is outdated, lacking clear consolidation of FDI rules and well-defined investor treatment provisions. He pointed out that entry procedures still involve multiple approvals and suffer from limited transparency. Although digitalisation efforts are underway, they remain constrained by continued reliance on manual processes.

He further highlighted ongoing challenges related to foreign exchange repatriation, land access, infrastructure limitations, and restricted skilled labour mobility, including the absence of a dedicated personal visa scheme.

Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun stressed that Bangladesh must "shift gears" to attract global investment. "If we have been operating in second gear so far, we now need to move into fifth gear," he said, underscoring the importance of competitiveness and alignment with global standards.

UNDP Resident Representative in Bangladesh Stefan Liller emphasised that coherent policies and strong institutional capacity are critical to attracting responsible investment that generates employment and promotes inclusive growth.

Chief Executive Officer of BUILD Ferdous Ara Begum said "Her organisation has compiled an updated business licensing guidebook covering more than 600 licences. Including renewals, the total number of licences may range from 500 to 1,200."

She also noted that starting a business in Bangladesh—across manufacturing, services, or trade—initially requires around 23 licences. Based on data from citizen charters, obtaining these approvals takes an estimated 477 days.

Referring to a Cabinet Division directive issued in 2000, Begum further explained that ministries were instructed to publish timelines for administrative procedures. BUILD's analysis, based on these official timelines, shows that completing the required processes to start a business takes approximately 477 days.

She said that if starting a manufacturing business alone takes this long, other sectors may require even more time. "In that respect, the top priority should be reducing the number of steps, shortening the time, and simplifying the process," she said, adding that this remains one of the private sector's biggest challenges. She also noted that the private sector has already submitted several recommendations to address these issues.

Ferdous Ara Begum also commented on the proposed plan to merge five investment-related regulatory and promotional agencies with Bida, PPP, Beza, Bepza, BHTPA and BSIC.

She said such institutional consolidation could help improve coordination, reduce duplication, and streamline investment services. However, she stressed that its success will depend on how effectively the reform is implemented and whether the merged structure can ensure faster and more efficient decision-making for investors.

Regarding the National Board of Revenue (NBR), Ferdous Ara Begum said the tax system remains one of the biggest challenges for Bangladesh's private sector. She noted that although various reforms are underway, significant issues persist in tax policies.

The report concludes that key achievements include the establishment of Bida as the lead investment facilitation agency and the expansion of digital investment services. However, it recommends adopting a unified national investment policy, enacting a consolidated investment law, and fully digitalising investment procedures to enhance competitiveness ahead of LDC graduation.

The conflict in the Middle East has disrupted supplies of crucial raw materials and pushed up prices of the printed circuit boards (PCB) used in almost all electronic devices, from smartphones and computers to AI servers, industry sources and executives said.

The disruption is a fresh blow to electronics manufacturers which are already grappling with soaring memory chip costs and highlights the broadening impact of the Iran war that has wreaked havoc on supply chains, plastics, and oil supplies.

Iran struck Saudi Arabia's Jubail petrochemical complex in early April, forcing a halt in production of high-purity polyphenylene ether (PPE) resin — a critical base material used to manufacture PCB laminates.

SABIC, which accounts for approximately 70% of the world's high-purity PPE supply and operates in the Jubail complex on the Gulf coast, has been unable to resume output, severely tightening the availability of the material worldwide, according to one source. Shipping in and out of the Gulf has also been severely disrupted by the war.

PCB prices have been climbing since late last year, driven by a growing appetite for AI servers. Demand has been accelerating sharply since March as manufacturers scramble to secure raw material supplies and soften the impact of skyrocketing costs, three industry sources told Reuters.

In April alone, PCB prices surged as much as 40% from March, Goldman Sachs analysts said in a recent note. Cloud service providers are willing to accept further increases as they expect demand will outstrip supplies over the coming years, they added.

The global PCB industry is projected to increase by 12.5% to reach $95.8 billion in 2026, according to a recent report from Prismark.

Daeduck Electronics, a South Korean PCB maker whose customers include Samsung Electronics, SK Hynix and AMD, has begun discussions with customers over price increases, a senior executive at the company told Reuters.

The executive, who declined to be named due to sensitivity of the subject, said his priority has now changed from meeting customers to suppliers, as the waiting time for chemical materials such as epoxy resin has stretched to 15 weeks from three weeks previously.

The sharp rise in PCB prices was also driven by a shortage of other key materials, including glass fibre and copper foil, according to one source. Copper foil prices have surged as much as 30% so far this year, with the rally gaining momentum in March, the source added.

Copper accounts for around 60% of total raw material costs in PCB manufacturing, according to Victory Giant Technology, a major Chinese PCB supplier for Nvidia. The Chinese firm warned earlier this month that the Middle East conflict could push up prices for key materials including resin and copper.

Multi-layer PCBs can cost around 1,394 yuan ($204) per square metre, with higher-end models for AI servers costing around 13,475 yuan, according to Victory Giant.

The first of the two units of the Rooppur Nuclear plants, with a combined capacity of 2,400 megawatts (MW), is set to begin its operational procedures, following the fuel loading today, raising hope that it will likely help Bangladesh better manage its power demand.

With approximately 300MW of power from the first unit (1,200MW) coming online by August 2026, the country will likely be able to harness its optimal benefits during the summer of 2027, as it takes 10 to 12 months to operate it in full capacity.

Given the power crunch Bangladesh experiences due to scorching heat and rising demand for cooling in summers, this nuclear power plant has the potential to partially alleviate these challenges next summer. Besides, this baseload power plant can partly support in times of uncertainty that force the government to reduce fossil fuel imports, which ultimately have knock-on effects in the power sector.

The VVER nuclear plant's designed economic life is 60 years to generate stable power and thus can help the imported fossil-fuel-dependent country considerably, especially by limiting volatile and expensive liquefied natural gas (LNG) in the future.

While there is no publicly available information on tariffs, it is expected that the cost of power from the nuclear plant will be lower than the country's average grid-based power generation cost. If the cost can be kept within Tk10 per kWh, it will help the Bangladesh Power Development Board (BPDB) rein in the rising power generation costs and associated pressure to raise power tariffs.

Looking ahead, once the country brings the second nuclear unit online, Bangladesh will likely have a substantial baseload capacity, including its gas- and coal-based plants, sufficient to meet the country's power demand even beyond 2030, considering the country's subdued growth in demand. This power system capacity eventually opens opportunities for a significant renewable energy expansion, relying on both decentralised and utility-scale projects.

As baseload nuclear plants offer a significant opportunity, Bangladesh can use them judiciously to reduce load-shedding and dependence on imported carbon-intensive fuels in the near term. Over time, scaling up renewable energy will be critical to strengthening the country's energy security and resilience.

-This report was prepared based on a phone conversation with Shafiqul Alam, lead energy analyst for Bangladesh at Institute for Energy Economics and Financial Analysis.

Chinese regulators have blocked Meta's planned acquisition of artificial intelligence start-up Manus, a deal estimated at about $2 billion, citing restrictions on foreign investment.

The National Development and Reform Commission prohibited the transaction and ordered both parties to withdraw, according to details of the decision, reports the BBC.

Manus has drawn attention for what it describes as "truly autonomous" agents, technology designed to independently plan, execute and complete tasks based on initial instructions, rather than relying on continuous user prompts. Analysts had viewed the capability as a "natural fit" for Meta's push into artificial intelligence under Chief Executive Mark Zuckerberg.

The regulatory intervention reflects concerns tied to Manus's origins. Although now headquartered in Singapore, the company was founded and previously based in China, making it subject to rules governing the export or sale of technology to foreign entities.

The review process has also involved legal complications. In March, Manus's two co-founders were placed under exit bans, preventing them from leaving China while authorities examined the deal.

Despite the block, Meta has said the Manus team is already "deeply integrated" into its operations, working to expand the service for millions of users. That level of integration could complicate efforts to "unwind" the arrangement.

The decision comes amid broader tensions between the United States and China over advanced technologies. The White House has said it plans to work with US companies to counter what it called "industrial-scale campaigns" by foreign actors, particularly in China, to appropriate AI innovations. Chinese officials, in turn, have criticised what they describe as the "unjustified suppression" of Chinese firms and say the country is emerging as a global "innovation lab".

Within Meta, the development coincides with a period of restructuring as the company increases spending on AI. It recently announced plans to cut about one in ten jobs, its largest round of layoffs since 2023. Meta has said it hopes for an "appropriate resolution" to the regulatory review and maintains that the transaction complied with applicable laws.

After four consecutive sessions of gains, the Dhaka Stock Exchange (DSE) ended lower today (27 April) as investors booked short-term profits amid cautious sentiment and ongoing market uncertainty.

Selling pressure dominated most sectors throughout the session, pushing the benchmark DSEX, along with the DS30 and Shariah-based DSES indices, into negative territory.

Market participants said the recent rally prompted many investors to lock in gains, while global developments, geopolitical tensions, and macroeconomic uncertainty also contributed to cautious trading.
The DSEX fell 16 points to close at 5,301. The DS30 index dropped 9 points to 2,018, while the DSES declined 10 points to 1,057.

Market breadth remained sharply negative, with 102 stocks advancing against 223 declining and 67 remaining unchanged. Turnover also fell 2.7% to Tk956 crore from Tk982 crore in the previous session.

In its daily market review, EBL Securities said the market reversed after recent gains as investors reshuffled portfolios amid earnings disclosures, domestic economic signals, and geopolitical developments. It added that although the market started firm and held gains mid-session, broad-based selling in the final trading hour dragged indices lower.

Sector-wise, the General Insurance sector led turnover with 16.1%, followed by Banking at 13.0% and Textile at 11.6%. Most sectors ended lower, with Ceramics declining 2.0%, while Paper and Textile both fell 1.3%. General Insurance was the only major gaining sector, rising 2.9%.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed in the red. The Selective Categories' Index (CSCX) dropped 18.9 points, while the All Share Price Index (CASPI) fell 35.8 points at the close of trading.

Oil prices were up more than 1 percent on Monday as peace talks ‌between the US and Iran stalled while shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.

Brent crude futures rose $1.35, or 1.3 percent, to $106.68 a barrel by ​0453 GMT, retreating from early session gains of over $2 a barrel. ​ US West Texas Intermediate was at $95.35 a barrel, up 95 cents, or 1 percent.

Last week, Brent and WTI gained nearly 17 percent and 13 percent, respectively, ​the biggest weekly gains since the start of the war.

Hopes of reviving peace ​efforts receded during the weekend when US President Donald Trump scrapped a planned trip to Islamabad by his envoys Steve Witkoff and Jared Kushner, even as Iranian Foreign Minister Abbas ​Araqchi arrived in Pakistan.

“President Trump’s recent post on Truth Social, urging to shoot ​and kill any Iranian boat laying mines in the Strait of Hormuz, alongside his claims ‌of having full control over Hormuz, has continued to fuel elevated war premiums,” said Priyanka Sachdeva, analyst at Phillip Nova.

Tehran has largely closed the strait while Washington has imposed a blockade of Iran’s ports. Traffic through the Strait of Hormuz ​remained limited, with ​just one oil products tanker entering the Gulf on Sunday, shipping data from Kpler showed.

Goldman Sachs raised its oil price forecasts for the fourth ​quarter to $90 a barrel for Brent crude and $83 for ​WTI, citing reduced output from the Middle East.

“The economic risks are larger than our crude base case alone suggests because of the net upside risks to oil prices, unusually high ​refined product prices, products shortages risks, and the ​unprecedented scale of the shock,” GS analysts led by Daan Struyven said in a note on Sunday.