Bangladeshi businesses have been thrown into deep uncertainty following Iran’s announcement that it has closed the strategic Strait of Hormuz, a key maritime route through which Bangladesh conducts trade with seven Middle Eastern countries.
According to data from Bangladesh Bank and the National Board of Revenue (NBR), Bangladesh imported goods worth nearly $6 billion from countries using the Hormuz route in the 2024-25 fiscal year, while exports to those markets totaled around $750 million.
Exporters say that as conflict spreads across the Middle East, shipments by both sea and air have virtually come to a halt. As a result, a severe bottleneck has developed on both the import and export fronts.
Trade with Seven Key Middle Eastern Markets: Bangladesh relies on the Strait of Hormuz to trade with Iran, Iraq, Qatar, Kuwait, Bahrain, the United Arab Emirates, and Saudi Arabia. The sudden closure, coupled with Iran’s warning that any vessel attempting to cross the strait would face military retaliation from its Revolutionary Guard and navy, has significantly escalated fears among global shipping operators. Shipping lines have already suspended bookings for cargo bound for Persian Gulf destinations. Industry insiders estimate that more than 1,000 containers destined for
Middle Eastern ports are now stranded at Chattogram Port, private depots, Colombo Port in Sri Lanka, and several foreign transshipment hubs.
Azmir Hossain Chowdhury, Head of Operations and Logistics at Mediterranean Shipping Company (MSC) Bangladesh, told The Daily Industry, “Around 250 of our containers are currently stuck. We have stopped taking new bookings for the region.”
Processed Food and Garment Exporters at Risk: Bangladesh exports a wide range of products to the Middle East, including ready-made garments, processed foods, vegetables, fruits, frozen fish, caps, and footwear. Exporters warn that if the conflict drags on, small and medium-sized enterprises (SMEs) could face severe financial stress.
Mohammad Shahjahan Chowdhury, Managing Director of Riverine Fish & Food Processing Industries and President of the Bangladesh Frozen Foods Exporters Association, said over 100 containers of frozen fish are stranded at ports and factories. “If the disruption continues for long, several factories may be forced to shut down,” he told The Daily Industry.
One of the country’s leading conglomerates, PRAN-RFL Group, which exported $540 million worth of goods last year, sends 30-35 percent of its exports to Middle Eastern markets. Kamruzzaman Kamal, Director (Marketing) of the group, said nearly 600 export containers are currently stuck in various Middle Eastern ports.
“New export orders are not coming. Imports have also stopped. We rely on petrochemicals from the region as raw materials for plastics. Shipments of 10,000-12,000 tonnes have already been cancelled,” he said. “If the war does not end within a week, production in our factories will be disrupted.”
Fuel and Energy Concerns Loom: Economists warn that the implications go beyond trade disruptions. Dr Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), told The Daily Industry, “The conflict has expanded across almost the entire Middle East. It is difficult to predict how long it will last. Initially, import and export operations are facing obstacles. But energy concerns could soon become much bigger.”
According to Bangladesh Petroleum Corporation (BPC) data, the country has fuel reserves-excluding kerosene-for only two to four weeks. Experts say alternative sourcing strategies must be explored immediately.
Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), emphasized urgent policy coordination.
“The crisis is unlikely to resolve quickly. If it continues, it will create serious macroeconomic stress. While there may be short-term reserves of oil and LNG, prolonged disruption will deplete stocks. LNG prices are already rising, which could intensify inflationary pressures,” Raihan told The Daily Industry. “The government must urgently engage business leaders and economists to finalize contingency plans.”
Orders Suspended Ahead of Eid: The uncertainty has already started affecting future export orders. Fatullah Apparels in Narayanganj shipped a consignment to Saudi Arabia last Saturday. Another shipment scheduled for March 7 has now been postponed at the buyer’s request.Managing Director Fazle Shamim Ehsan said, “Small pre-Eid orders are crucial for us because we have to pay workers’ wages and bonuses. The suspension is worrying.”
Similarly, several containers loaded for the UAE and Saudi Arabia have been offloaded after shipping bookings were cancelled. Exporters are now removing goods from containers and storing them at depots, but perishable items face the risk of expiry if delays persist.
Broader Economic Risks: Beyond export setbacks, import disruptions are equally alarming. Bangladesh depends heavily on Middle Eastern crude oil, refined fuel, and petrochemicals. Analysts warn that if the Hormuz closure persists, global oil prices could surge past $100 per barrel, further straining Bangladesh’s foreign exchange reserves and fueling domestic inflation.
With more than $6 billion in annual imports tied to the region, prolonged instability could widen the trade deficit and intensify pressure on the taka.
Business leaders say the situation demands immediate diplomatic engagement and diversification of supply routes. Alternative shipping corridors and sourcing options must be explored, while emergency fuel management strategies should be activated.
As one senior exporter told The Daily Industry, “This is not just a shipping disruption. It is a full-scale trade shock. If it lasts beyond a few weeks, the consequences for Bangladesh’s manufacturing sector could be severe.” For now, thousands of containers remain stranded, factories face looming raw material shortages, and exporters anxiously await clarity on when one of the world’s most critical maritime chokepoints will reopen.
