US-Israel war on Iran may spike logistics costs for RMG: DCCI

Export-driven industries in Bangladesh, particularly the readymade garment (RMG) sector, face rising logistics costs, supply chain delays, and shipping risks due to the ongoing US-Israel war on Iran, the Dhaka Chamber of Commerce & Industry (DCCI) said today.

In a press release, the chamber expressed grave concern, noting that the tension is already causing turbulence in global energy markets, trade routes, and financial systems. As a highly import-dependent economy, Bangladesh is vulnerable to these external shocks.

International oil prices recently surged beyond $100 per barrel before dropping below $90, as supply disruptions hit the Middle East.

The DCCI estimated that every $10 increase in global oil prices could raise Bangladesh’s monthly import bill by approximately $70–80 million, further widening the trade deficit.

The conflict has also disrupted major shipping routes, especially the Strait of Hormuz, which handles nearly 20 percent of global oil and gas supply. Prolonged interference here could significantly increase freight rates, insurance premiums, and delivery times for Bangladeshi trade.

Domestically, exports have been declining for the past seven months due to political and economic challenges.

While short-term relief has come with over 10 vessels carrying LNG, LPG, diesel, and other fuels arriving at Chattogram Port recently, the DCCI warned that the situation remains highly unpredictable.

If the conflict escalates, the chamber predicts a series of macroeconomic challenges, including higher electricity production costs, inflation driven by transport hikes, and potential interruptions in remittance flows from the Middle East.

To mitigate these risks, the DCCI urged the government to build strategic fuel reserves, diversify energy import sources, and maintain close coordination between financial institutions and the business community.