Lock of Hormuz vs Bangladesh Stocks:The Chokepoint Crisis and Intellectual turn

There is a saying that even a temple cannot be saved if a city catches fire.Bangladesh is a strong reflection of that saying. Bangladesh is a victim of the Middle East war game without getting involved in the conflict.When the long-standing shadow war between Iran and Israel is about to turn into a direct conflict, its vibrations are not limited to Tehran or Tel Aviv.The center of these vibrations has become the Strait of Hormuz,one of the most important waterways in the world. On one side, the sirens of war are sounding on the other side,the nervous roar of various revenges and resistances has started to sound.Recently In the midst of the Iran-Israel war in the Middle East,Iran closed the world’s most powerful central waterway, the Strait of Hormuz, to reflect its strategic position and power.Looking at the world map,the Strait of Hormuz located at the junction of the Gulf of Oman and the Persian Gulf.It may seem like just a narrow waterway.But in the equation of geopolitics and the world economy.This 21-mile waterway is essentially the world’s carotid artery or main artery.It is an important transportation and sensitive waterway in the world.About 20-25% of the world’s total mineral oil production is transported through this narrow waterway.

Almost one-fifth of the world’s crude oil is transported.At its narrowest point,this strait is only 33 kilometers wide.The major victims of the closure of this waterway are underdeveloped countries like Bangladesh. Bangladesh is facing a multifaceted crisis due to the closure of the Strait of Hormuz, although its impact has not yet been felt. However,its impact will undoubtedly become clearer in the near future.Bangladesh mainly uses this waterway to import and export Bangladeshi goods with seven countries likes Iran,Iraq,Qatar,Kuwait,Bahrain,the United Arab Emirates and Saudi Arabia. According to the data of Bangladesh Bank and the National Board of Revenue (NBR), in the last fiscal year 2024-25, about 6 billion dollars worth of goods were imported from these countries. At the same time, about 750 million dollars worth of goods were exported.Bangladesh imports a large amount of LNG and crude oil from Qatar, Saudi Arabia and the United Arab Emirates. Due to the closure of this route, the supply is being disrupted, which is likely to increase the price of oil in the country several times. Not only that,various agricultural,industrial and commercial raw materials were imported using this route. If the price of fuel increases,Transportation fares will increase and electricity production will be expensive. As a result,the production costs of agriculture and industries will increase, which will directly put pressure on the common people.Due to the instability in the Middle East, expatriate Bangladeshis living there may lose their jobs or face a salary crisis.Which will have a negative impact on our foreign exchange reserves.Besides this due to the increase in import costs,the prices of daily necessities will increase.Which may result in severe inflation.Bangladesh is already under pressure from the global instability and dollar crisis.On top of that, if energy prices increase,production costs may increase, and the export sector.Especially the ready-made garment industry may lag behind in competition. If the cost of electricity production increases, both load shedding and high tariffs are created in the industrial sector.The biggest structural problem in Bangladesh is that various goods are not stored here for more than 2-3 weeks.Increasing sufficient oil reserves in the country so that it can last for a few months in temporary crises.Instead of relying only on the Middle East,Russia can also import from Central Asia or African countries.Making long-term contracts for energy imports. Rapidly increasing the use of domestic and renewable sources like solar power and wind power to reduce dependence on imports.Taking a strong position in international forums in favor of keeping this route operational and continuing discussions with friendly countries on energy security. Adopting a policy of being economical in energy use at the national level so that when demand is in trouble,supply does not become uncertain due to syndicate pressure.In the case of Bangladesh,there is both risk and possibility of meeting this challenge.Despite the geographical distance,we are economically intertwined with this waterway.In this case,there is no alternative to maintaining intellectual stability in foreign and policy.Therefore, early warning and diplomatic activity can be our only shield.If the government can implement a proactive and comprehensive strategic plan in this regard,the spread of fear will reduce.