Qatar on Monday suspended its Liquefied Natural Gas (LNG) production following attacks on key operating facilities by Iran.

This suspension means Bangladesh, which has a long-term agreement with Qatar to supply LNG, will not get its much-needed fuel in this lean season. As a result the country will face heavy load shedding, since a significant portion of its gas-based power generation will not have adequate supply.

Bangladesh is heavily dependent on imported fuels to meet its energy needs. It imports various fuel oil, coal, LNG, and liquefied petroleum gas (LPG) worth around $5 billion annually because domestic gas and coal resources are very limited.

Lost opportunity

Bangladesh could have fared differently and better had the Yunus-led government not cancelled 31 renewable power projects totalling 3,300 megawatt capacity, mostly solar, with around 300MW wind and a small 25MW waste-to-energy project.

By now, around one third of these projects could have been generating electricity, reducing the impact of load shedding caused by impending LNG supply shortfall.

However, they were cancelled in September 2024, just one month after Muhammad Yunus assumed office. The government argued that these projects, signed under the Awami League through the controversial Quick Energy Supply (Special Provision) Act 2010, had not been awarded through competitive bidding.

The power tariffs under these projects ranged between 9.7 cents and 10.6 cents per kilowatt hour. The Transparency International Bangladesh (TIB) and the investors criticised the cancellation, and the government's decision was challenged at the High Court. The court ruled that the projects had been signed in good faith and could therefore be condoned with a review option.

With Letters of Intent (LoIs), the power companies had already purchased or were in the process of purchasing lands for their projects. Land acquisition is the most difficult part for any such ventures.

Costly mistake

When companies were expecting final agreements, the then-energy adviser Fouzul Kabir Khan pushed for the cancellation of all LoIs. The government subsequently floated fresh tenders for renewable projects totalling more than 5,000MW.

Although these tenders drew bids with lower tariffs at between 7 and 8 cents, the participation was weak, and the government secured deals for only about 900MW. If these bidders prove competent, their project may come online in 2028 or later but not before.

Cancelling the 31 deals was a costly mistake. Bangladesh remains far behind its renewable energy targets. The more energy it imports, the more vulnerable it becomes to global market volatility, geopolitical conflict, and foreign currency depletion. Building renewable capacity is essential for long-term energy security.

Renegotiation was better

Instead of outright cancellation, the Yunus government could have renegotiated the bids for these 31 projects.

Dozens of bidders told TBS in 2024 that the tariff offered by these solar projects ranges between 9.7 cents and 10.6 cents per kilowatt hour. These offers were made more than a year ago during which time solar modules price dropped by 20%. Since solar modules account for 35% of the project costs, the government could have renegotiated tariffs down by at least 1 cent and up to 1.5 cents bringing them into the 8-9 cents range.

The Yunus government also significantly reduced import duties on solar panels to 1% for the 2025-26 fiscal year to promote renewable energy. Additionally, a 10-year tax holiday (100% for 5 years, then 50% for 3, 25% for 2) is available for eligible renewable energy projects, with proposals to exempt VAT and stamp duty.

This prompted some of the cancelled bidders to offer even more cuts in their tariffs. But the government did not respond, a couple of bidders said.

Solar module prices decline almost every year globally. This was confirmed when the bids in 2025 under the Yunus government came in at 7-8 cents.

These 31 cancelled projects could have replaced $820 million worth of fossil fuel imports while providing direct jobs to 10,000 people.

Bangladesh had set a target of generating 15% of its electricity from renewable resources by 2030 and 40% by 2040. Yet, current achievements hover around just 3%.

Cancelling projects is easy because it requires doing nothing. But prudently executing them demands foresight, effort, and the intellectual capacity to secure the nation's future.

Northern Jute Manufacturing Company, a company listed on the stock exchanges, has said there is no undisclosed price-sensitive information behind the recent surge in its share price.

In response to a query from the Dhaka Stock Exchange (DSE) on 2 March over the unusual price hike, the company made the statement through a disclosure published on the exchanges yesterday (4 March).

DSE data show that in just six trading sessions up to 2 March, the company's share price jumped around 52% to Tk139.20 from Tk91.50 on 22 February. Yesterday, the shares closed at Tk131.80, up 4.27% from the previous session.

In the 2019–20 fiscal year, the company reported a profit of Tk2.43 crore. Since then, it has not disclosed any financial statements.

The company has been out of production for several years. A DSE inspection team found in 2024 that the factory premises were completely closed.

Officials at the Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estate in Kushtia, where the factory is located, said the plant had been shut eve before the Covid-19 pandemic as the board of directors went into hiding. It operated partially during the pandemic before eventually closing down entirely.

Listed in 1994, the company has a paid-up capital of Tk21.14 crore. Of the total shares, public shareholders hold 84.9%, while sponsor-directors hold 15.09%.

According to its website, Northern Jute set up a modern jute yarn and twine manufacturing plant with 2,433 spindles on 5.5 acres of land at the BSCIC Industrial Estate in Kushtia. The company has two units for producing heavy- and light-count yarn and previously exported its products to several countries, including Turkey, Japan, Hong Kong, Poland, Russia, Bulgaria, India, China, and Australia.

Trading activity at the Dhaka Stock Exchange (DSE) shrank sharply yesterday (4 March) as investors largely stayed on the sidelines following Tuesday's record-breaking plunge, although the benchmark index managed to stabilise.

The DSEX edged down just 2 points, or 0.03%, to close at 5,323, trimming the massive 218-point fall recorded a day earlier the steepest single-day drop in six years since the Covid-19 pandemic. The blue-chip DS30 shed 4 points, or 0.23%, to settle at 2,045.

Market breadth remained positive, with 227 issues advancing against 112 declining, while 54 remained unchanged.

However, turnover fell sharply by 34% to Tk582 crore, reflecting subdued participation as investors adopted a cautious stance after recent volatility.

Major index draggers included Grameenphone, BAT Bangladesh, Square Pharma, LafargeHolcim Bangladesh and National Bank, which collectively kept the benchmark under pressure despite gains in smaller stocks.

Market insiders said the bourse appeared to have absorbed the shock from Tuesday's panic-driven selloff, triggered by fears of an energy supply disruption amid escalating tensions in the Middle East.

Analysts noted that the moderation in losses suggested investors were reassessing the situation rather than rushing to exit positions.

A managing director of a brokerage firm told The Business Standard that investor confidence improved after the government decided to procure fuel from the spot market to avert a potential energy crisis.

The move helped calm fears of immediate supply shortages and power disruptions, which had intensified in the previous session.

Yesterday's trading reflected a pause in panic selling, with many investors staying on the sidelines while some bargain hunters picked up low-priced stocks that had fallen sharply regardless of fundamentals.

As a result, several loss-making firms dominated the gainers' list.

Top gainers included Fareast Finance, FAS Finance, Peoples Leasing and Pacific Denims, each rising 10%, while Saif Powertec gained 9.67%.

On the losing side, GSP Finance fell 9.67%, Union Capital dropped 8.82%, Sonargaon Textile declined 8.05%, while Grameenphone and BIFC also posted notable losses.

The cautious sentiment extended to the port city bourse. At the Chittagong Stock Exchange PLC, the CSCX fell 52 points to 9,175 and the CASPI tumbled 68 points to 15,017.

Turnover there plunged 62% to Tk8.86 crore, reflecting a sharp contraction in trading activity.

Dacca Dyeing and Manufacturing Company Ltd is facing a deepening financial crisis that has cast serious doubt over its ability to continue as a going concern, according to its latest audited financial statements.

In the audit report for the financial year 2024–25, the company's auditor flagged significant uncertainties surrounding its future operations, citing accumulated losses, mounting debt obligations and substantial underutilisation of production capacity.

The audit observations show that the company has incurred heavy retained losses, eroding its capital base. A sizeable portion of both long-term and short-term loans has either matured or is due for repayment, intensifying liquidity pressure.

At the same time, a large share of its installed production capacity remains idle, reflecting weak operational performance and limited business activity.

Considering these conditions, the auditor expressed concern about the company's ability to continue its business operations in the foreseeable future.

Listed on the Dhaka Stock Exchange PLC in 2009, the company has a paid-up capital of Tk87.15 crore.

Its shareholding structure shows that sponsors and directors hold 30.10%, institutional investors 17.25%, foreign investors 0.08%, while the remaining 52.57% is held by general shareholders.

Today (4 March), the company's shares closed 0.56% lower at Tk17.90.

The textile manufacturer has been incurring losses and has not declared any dividend since the 2022–23 financial year, leading to its downgrade to the Z category on the stock exchange.

Companies placed in the Z category typically fail to pay dividends or hold annual general meetings on time, signalling elevated risk for investors.

The financial strain has intensified further in the current fiscal year. In the first half of FY26, the company reported a loss of Tk372.20 crore, marking a sharp deterioration in its financial health.

During the July–December period of FY26, turnover fell 41% year-on-year to Tk8 crore, underscoring a severe contraction in business activity. In the corresponding period a year earlier, the company had reported a loss of Tk18.20 crore.

Loss per share surged to Tk42.71 during the period, reflecting the scale of the downturn.

Founded in 1963, the company is currently operated under the QC Group. Its board includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury and Sajia Quader Chowdhdhury, who are relatives of former BNP leader Salahuddin Quader Chowdhury, executed in 2015 for crimes against humanity committed during the 1971 Liberation War.

Song Yang, commercial counsellor of the Embassy of the People's Republic of China in Bangladesh, has underscored a significant surge in investment commitments to Bangladesh.

"Since August 2024, more than 30 Chinese enterprises have signed investment agreements with Bangladeshi partners, with intended investments totalling nearly $1 billion," he said at an Iftar programme held at a hotel in Dhaka today (4 March), organised by the Bangladesh China Chamber of Commerce and Industry (BCCCI).

Leaders of the Chinese Enterprises Association in Bangladesh (CEAB) also expressed optimism about further investments in the coming days.

Han Kun, President of CEAB, reaffirmed the commitment of Chinese enterprises to supporting Bangladesh's development through investment, industrial cooperation, and participation in development projects.

In his welcome remarks, BCCCI President Khorshed Alam stressed the importance of expanding bilateral trade and investment. He noted that China has granted 100% duty-free access to Bangladeshi products and encouraged exporters to take advantage of this opportunity by promoting products such as fruits, vegetables, shrimp, agricultural goods, and leather items.

Among others present at the programme were Md Golam Rasul, chief of the Special Branch (SB) of Police; Mahbubur Rahman, president of the International Chamber of Commerce (ICC), Bangladesh; and Nargis Morsheda, former administrator of BCCCI and joint secretary at the Ministry of Commerce.

The event brought together diplomats, senior government officials, leaders of trade bodies, presidents of bilateral chambers, directors and members of BCCCI, and representatives from the media.

After several rounds of rises, gold prices in Bangladesh fell, with the rate of 22-carat gold dropping by Tk9,214 per bhori.

The new rate sets the price of 22-carat gold at Tk2,68,214 per bhori (11.664 grams), according to a statement issued this morning (4 March) by the Bangladesh Jewellers Association (Bajus).

Bajus said the decision was taken considering the overall market situation, particularly a decline in the price of pure gold (tejabi gold) in the local market.

The revised rates have come into effect immediately.
Gold prices hiked by Tk3,324 per bhori

Under the new pricing structure, 21-carat gold now costs Tk2,56,025 per bhori while 18-carat gold is priced at Tk2,19,258 per bhori.

The price of traditional-method gold has been set at Tk1,79,159 per bhori.

The last adjustment was made on 3 March, when Bajus increased the price of 22-carat gold by Tk3,324 per bhori to Tk2,77,428.

So far in 2026, gold prices have been adjusted 37 times in the domestic market, with rates increased 24 times and reduced 13 times.

Alongside gold, silver prices have also been reduced.

The price of 22-carat silver has been cut by Tk641 per bhori to Tk6,532.

The price of 21-carat silver now stands at Tk6,240 per bhori, 18-carat silver at Tk5,365 per bhori, and traditional-method silver at Tk4,024 per bhori.

In 2026, silver prices have been adjusted 22 times so far, including 14 increases and eight reductions.

Commerce Minister Khandakar Abdul Muktadir has said the recently signed trade deal between Bangladesh and the United States is not irreversible, noting that there remains scope for amendment, addition or deletion of provisions if needed.

The agreement includes elements that could help further strengthen bilateral trade ties in the future and should not be viewed as "wholesale negative" or "wholesale positive", he said while speaking to reporters after a meeting with US Assistant Secretary of State for South and Central Asian Affairs S Paul Kapur at the commerce ministry today (4 March).

Muktadir said there was no discussion on the recent trade deal, noting that the agreement has already been signed and constitutes a state-level arrangement, leaving little scope for fresh decisions at this stage.

"The agreement was signed on the 9th [February]. There was no separate discussion on it today," he said, adding that the deal was signed to expand economic, trade and investment relations between the two countries.

Referring to bilateral trade, he said the volume of trade between the countries exceeds $8.5 billion, while Bangladesh imports goods worth nearly $2.75 billion from the US. "As a single country, the US remains one of Bangladesh's largest trading partners."

Asked whether issues mentioned in a congratulatory letter to the premier from US President Donald Trump – including trade and defence-related matters – were discussed, the minister replied that military issues do not fall under his ministry's jurisdiction.

On the issue of visa bonds, he said the matter would be handled by the foreign ministry. The government wants businesspeople and investors from both countries to travel without obstacles, he said.

At the meeting, Muktadir highlighted the volatility in the global energy market following the Middle East conflict and sought US cooperation, especially in ensuring LNG supplies.

He said discussions covered investment, digital infrastructure development and prospects for future economic cooperation, alongside trade-related issues.

During the meeting, Paul Kapur recommended the removal of non-tariff barriers that may be hindering American investment in Bangladesh, Muktadir said.

The US believes that eliminating certain non-tariff barriers would help attract more American investment to Bangladesh, making the country a more appealing destination for US businesses, the minister said.

US cuts Bangladesh tariff to 19%, no duty on RMG made of US cotton

He said that addressing these barriers could also facilitate Bangladesh's smoother inclusion in US development assistance and financing programmes. However, the minister did not disclose which non-tariff barriers were discussed.

Meanwhile, the US assistant secretary held a separate meeting with Foreign Minister Khalilur Rahman at the foreign ministry.

Speaking to the media on the recent deal, Khalilur said that the reciprocal trade agreement was not signed abruptly just days before the national election.

He claimed that the matter had been discussed in advance with the leadership of the country's two major political parties – BNP and Jamaat-e-Islami, and both had agreed to the deal before its signing.

"The US Trade Representative spoke to the heads of our two key parties before the elections and they also agreed to it. So it's not like we did this in the dark," Khalilur said in response to a question on whether there had been any pressure to expedite the signing of the deal ahead of the recently held national election.

US makes up to Tk18 lakh visa bond mandatory for Bangladeshi B1/B2 applicants from 21 Jan

He said there are entry and exit clauses and the government can review it if it desires so.

"We have discussed the crisis in the Middle East. I told him [Paul Kapur] that two of our Bangladeshis have lost lives and seven others have been injured. If this war is prolonged or spreads, this fear may increase further," he said.

Dhaka conveyed to the US official that the US should try to resolve this conflict, this problem, through dialogue as soon as possible by giving diplomacy opportunity.

Paul Kapur, however, underscored the importance of implementing the provisions of the agreement on "reciprocal trade" to foster greater bilateral trade and investment, the foreign minister said.

Bangladesh’s monthly import bill could rise by up to $80 million for every $10 increase in oil prices, as escalating conflict in the Middle East drives up global energy prices, according to the report prepared by BRAC EPL Stock Brokerage Ltd.

The warning came yesterday as oil prices rose about 1 percent following US and Israeli strikes on Iran, which have disrupted supplies in the region.

Iran has closed the Strait of Hormuz, the only maritime gateway to the Persian Gulf. Around one-fifth of global oil exports pass through this route.

Brent crude climbed $1.1, or 1.4 percent, to $82.52 a barrel by 1143 GMT, after closing on Tuesday at its highest level since January 2025, Reuters reported. The BRAC EPL report cited analyst warnings that a prolonged blockade could push prices well beyond $100 a barrel if the escalation continues into a second week.

Bangladesh spends roughly $1 billion to import more than 60 lakh tonnes of petroleum a year and relies heavily on the Hormuz route
Bangladesh bought crude at an average of $72 a barrel in 2025, according to the Bangladesh Petroleum Corporation (BPC).

Amid rising concern, the government held an emergency meeting yesterday. Officials discussed whether energy supplies from alternative sources could be secured in time if the disruption in the Gulf continues.

The report said war risk premiums have surged. Insurance costs for vessels operating in the Gulf have risen to 1 percent of ship value, up from 0.2 percent before the strikes. That has added hundreds of thousands of dollars to individual voyages.

Major insurers have begun cancelling war risk coverage for the Persian Gulf. About 150 tankers have dropped anchor, effectively stalling 20 percent of global oil and LNG shipments.

“Bangladesh’s immediate exposure is the higher delivered cost of crude and refined products, amplified by freight and insurance premiums,” the report said, adding that disruption in the Gulf now poses a direct operational risk for the country.

It added that contingency plans are under discussion, including prioritising gas for fertiliser and power generation while raising coal-based output to offset the “Hormuz risk”.

Bangladesh spends roughly $1 billion per year to import more than 60 lakh tonnes of petroleum and relies heavily on the Hormuz route. It sources most petroleum from the Middle East, and more than half of LNG imports in 2025 passed through this chokepoint.

The country meets nearly 30 percent of its gas demand, equivalent to 2,650 mmcfd, through imported LNG as domestic output continues to fall short.

On March 2, Oxford Economics projected that LNG prices could rise 30 percent to an average of about $14 per million British thermal units (MMBtu) between April and June, up from $9 to $10 at present.

Against the backdrop, state-run Rupantarita Prakritik Gas Co Ltd has floated tenders to purchase two LNG cargoes from the spot market for March 15-16 and March 18-19 deliveries, according to people familiar with the matter.

The BRAC EPL report said foreign exchange reserves stood at $30.27 billion in late February 2026, calculated under the IMF manual, providing a stronger buffer than a year earlier. However, it said the first impact of the conflict is likely to appear in the marginal dollar price of trade credit, particularly in letter of credit (LC) margins and forward premiums.

It said imported energy inflation leaves little room for absorption without wider knock-on effects.

“Under the current automatic pricing architecture, energy price changes transmit faster into transport, irrigation and food distribution costs, raising the probability of sticky headline inflation if the war premium persists into the April-May period, potentially forcing a reversal of the planned monetary easing if the war premium is not neutralised by June,” it added.

The report said a shift towards a more accommodative monetary stance is expected under the new governor of the Bangladesh Bank to support growth.

It said policymakers are likely to focus on ensuring dollar liquidity for commercial banks and could reintroduce import curbs on luxury goods, similar to measures taken during the 2022 Russia-Ukraine war, to contain imported inflation.

The Gulf Cooperation Council (GCC) accounts for 51 percent of remittance inflows to Bangladesh, with the United Arab Emirates and Saudi Arabia together contributing about one third of the total, the report noted. Historically, higher oil prices have strengthened fiscal spending and labour demand in the Gulf.

“This acts as a stabilising medium-term force on remittance continuity. Our take is that remittances can cushion US dollar liquidity to some extent but cannot fully neutralise a sustained energy import shock.”

On exports, the report said that higher freight and insurance premiums will increase the landed cost of Bangladeshi goods. Airspace disruption will cut belly cargo capacity and force rerouting. Belly cargo refers to goods transported in the lower deck or “belly hold” of a passenger aircraft.

As of March 4, global insurers had designated the Gulf a “Listed Area”, lifting premiums by 300 to 400 percent, it said.

“Expected longer lead times will require higher inventory buffers and may increase the risk of delivery-linked discounting. The competitiveness challenge, therefore, is whether Bangladesh exporters can preserve on-time delivery economics. Exporters with stronger balance sheets, better forwarder diversification, and resilient buyer relationships should be structurally better positioned,” it concluded.

Taxpayers may soon sigh with relief from the rigours of responding separately to multiple queries from tax and VAT officials as the government's revenue authority is integrating its outmoded auditing system.

A joint audit system for income tax and VAT (value-added tax) payers is set to be launched with a twin-purpose: to remedy taxpayer vacation and curb tax evasion through inter-agency data sharing. Both individual and corporate taxpayers will no longer have to respond to the same queries or submit the same documents twice.

Income-tax and VAT officials will conduct audits simultaneously to obtain a comprehensive picture of a taxpayer's financial position.

"Initially, we will start with 15 cases on a pilot basis to assess its feasibility," says Abdur Rahman Khan, chairman of the National Board of Revenue (NBR), in an interview with The Financial Express.

He mentions that the NBR has already begun selecting taxpayers for the piloting. A joint team comprising VAT and income -tax officials will conduct the audits and submit reports.

"If this model proves successful, the number of joint audits will be increased gradually," he adds.

The initiative -- which comes amid a recast of the revenue system, including bifurcation of the NBR into policy and implementation divisions -- is also expected to pave the way for merging the two separate Large Taxpayers Units (LTUs), which currently handle income tax and VAT matters independently.

Additionally, a data -integration system between the income-tax and customs wings will be introduced, allowing income tax officials to access customs import data for verifying tax returns, Mr Khan further mentions.

Currently, the income -tax and customs wings maintain separate databases, which will be bridged under the new initiative.

President of the Institute of Chartered Accountants of Bangladesh (ICAB) NK Mobin appreciates the move. He hopes it would reduce taxpayers' time and hassle caused by multiple audits from different agencies.

"This will provide comfort to taxpayers who previously had to furnish the same documents before income-tax and VAT officials during separate audits," he explains.

"Corporate taxpayers spend significant time and incur substantial costs in facing several audits by different agencies each year."

Apurba Kanti Das, former income-tax member at the NBR, mentions that the concept Large Taxpayers Unit (LTU) was introduced with a focus on income tax under the Revenue Reforms and Modernisation Project (RIRA), funded by UK's Department for International Development (DFID) in 2003.

Although the LTU initially had separate chambers for VAT officials, the VAT wing later opted to establish its own LTU, he notes.

Former customs member Farid Uddin, who served on the NBR reform advisory committee, says the two wings currently operate under separate laws and should be brought under one administrative structure.

In its reform report, the expert advisory panel recommended merging VAT and income tax into a single department.

"The two wings need to work in an integrated manner to conduct central audits effectively," he opines.

Talking to the FE, several field-level officials, however, have given some different views. They think the process would be difficult to conduct on a large scale as filed offices for income tax and VAT are scattered across the country.

There are numerous tax files with several timelines and natures which would need a rigorous brainstorming to make the model successful.

Adeline Beauty Technology (Bangladesh) Co Ltd, a Chinese company, will invest $22 million to establish a fashion and beauty products manufacturing factory at the Bepza Economic Zone in Mirsharai, Chattogram.

The investment will create employment opportunities for approximately 4,170 Bangladeshi nationals.

The company will manufacture a wide range of fashion, hair and beauty products, including wigs, eyelashes and cosmetic nails, primarily for export to major international markets such as the US, Canada, the UK, Germany, France, Spain, Italy, the UAE, Russia and Mexico, among other destinations.

Md Tanvir Hossain, executive director (investment promotion) of Bangladesh Export Processing Zones Authority (Bepza), and Hang Sun, managing director of Adeline Beauty Technology (Bangladesh) Co Ltd, signed a land lease agreement in this regard at the Bepza Complex in Dhaka yesterday, according to a press release.

Major General Mohammad Moazzem Hossain, executive chairman of Bepza, attended the signing ceremony.

Speaking on the occasion, he reaffirmed the authority’s commitment to providing a secure, compliant and business-friendly environment for investors.

He also encouraged further Chinese investment in diversified and value-added sectors.

Abdullah Al Mamun, member (engineering); ANM Foyzul Haque, member (finance); Samir Biswas, executive director (administration); Md Khorshid Alam, executive director (enterprise services); and ASM Anwar Parvez, executive director (public relations), along with senior officials of Bepza and representatives of the company, were also present.

Gold prices rose over 1 percent on ‌Wednesday, rebounding from a more than one-week low hit in the previous session, as a widening Middle East conflict sent global markets tumbling and supported safe-haven demand.

Spot gold gained 1.5 percent to $5,164.42 ​per ounce by 0701 GMT. US gold futures for April delivery ​added 1 percent to $5,174.30.

On Tuesday, bullion fell more than 4 percent to its lowest since February 20, weighed by a firmer dollar and dimming rate-cut prospects ​as inflation concerns were intensified by fears of a prolonged war.

Gold could shrug ​off the previous session’s selloff over the coming days as the metal has swayed to its own narrative and has been resilient despite whatever the dollar and yields have been ​doing since the beginning of last year, said Ilya Spivak, head of global ​macro at Tastylive.

Oil and gas prices surged as the US-Israeli war on Iran halted energy exports ‌from the Middle East, with Tehran attacking ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.

“Higher oil prices as a result of escalating geopolitical tensions in Iran added to inflationary concerns and complicated ​the outlook for ​monetary easing,” said Christopher Wong, a strategist at OCBC.

“The underlying fundamentals (for gold) have not materially shifted. Structural drivers such as geopolitical uncertainty, policy ​unpredictability and portfolio diversification needs remain intact,” Wong added.

Investors ​expect the US Federal Reserve to hold rates at the end of its next two-day meeting on March 18, according to the CME Group’s FedWatch tool.

Oil prices rose 1% on Wednesday as the U.S.-Israeli war on Iran disrupted Middle East supplies, but the pace of gains slowed from ‌past sessions after President Donald Trump raised the possibility of the U.S. Navy escorting vessels through the Strait of Hormuz.

Brent rose $1.17, or 1.4%, to $82.57 a barrel by 0408 GMT, after closing at its highest since January 2025 on Tuesday.

U.S. West Texas Intermediate crude rose 72 cents, or 1%, to $75.28, after settling at its highest since June. Both rose by around 5% or more in the past two sessions.

"Right now, geopolitics has clearly overtaken the usual price ⁠drivers like inventory data, U.S. economic numbers or OPEC commentary," Phillip Nova senior market analyst Priyanka Sachdeva said.

"In the near term, the key pointers to watch are physical export data from the Gulf, any confirmed tanker incidents, U.S. naval movement, and Iran's tone," she added.

Israeli and U.S. forces struck targets across Iran on Tuesday, prompting Iranian strikes against energy infrastructure in a region that accounts for just under a third of global oil production.

Iraq, the second-largest crude producer in the Organization of the Petroleum Exporting Countries, has cut output by nearly 1.5 million barrels a day, about half its production, due to storage limits and the lack of an export route, officials told Reuters. They said the country may have to shut its nearly ‌3 ⁠million bpd of output within days if exports do not resume.

Iran has also targeted tankers in the Strait of Hormuz, through which about a fifth of the world's oil and liquefied natural gas flows. Traffic through the Strait remains effectively closed.

Trump has said that the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, adding he had ordered the U.S. International Development Finance ⁠Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.

"The promise of such guarantees comes as insurers are cancelling war risk coverage for vessels moving through the Strait of Hormuz. This is welcome news, but clearly it won't happen overnight. ⁠Naval escorts would be helpful, but again, this effort will take time," ING analysts said in a note.

Countries and companies have begun seeking alternative routes and supplies. India and Indonesia said they were looking for other energy supplies, while some Chinese ⁠refineries were shutting or moving up maintenance plans.

In the United States, crude stocks rose by 5.6 million barrels last week, according to market sources citing American Petroleum Institute figures, well above the 2.3 million barrels analysts projected. Official figures from the U.S. government are expected later on Wednesday.

US Treasury Secretary Scott Bessent said Wednesday that Donald Trump’s 15-percent global tariff is likely to be rolled out this week, as the president moves to rebuild his trade agenda after a major legal setback.

The Supreme Court last month struck down Trump’s country-specific tariffs, which he imposed on allies and competitors alike, delivering a stinging rebuke of his signature economic policy.

Since then, the US leader has tapped a different law to impose a new 10-percent duty, and vowed to raise this level to 15 percent.

Asked when the hike will be implemented, Bessent told CNBC: “That’s likely sometime this week.”

He added that this will be done under Section 122 of the Trade Act of 1974 -- the same basis for Trump’s new 10-percent tariff -- which only allows for a duty lasting 150 days unless Congress extends it.

During this five-month window, the Trump administration will move to wrap up investigations linked to concerns over national security and unfair trade, Bessent said. These probe, in turn, could bring about new sets of tariffs.

“It’s my strong belief that the tariff rates will be back to their old rate within five months,” Bessent said.

“And those are very fulsome authorities,” he added, referring to the laws justifying these investigations.

“They have survived more than 4,000 legal challenges. They are more slow moving, but they are more robust,” Bessent said.

The Bangladesh Bank has decided to pause regular purchase of dollars from banks to keep the market afloat as it sees risk of exchange rate volatility in case the Middle East war prolongs.

The central bank's monetary policy committee meeting scheduled for Wednesday to review a policy rate reduction was cancelled considering the ongoing situation as it could further put pressure on the exchange rate, said a senior executive of the central bank.

Bangladesh Bank Governor Md Mostaqur Rahman, who had called the meeting as his first priority was to reduce the lending rate, has changed his mind, instructing officials that the policy committee meeting will be held after Eid.

The Bangladesh Bank bought $25 million from two commercial banks on Monday but decided to pause further dollar buying as it backtracked from the buying spree on Tuesday, according to central bank sources.

The central bank is in a comfort zone for now with its foreign exchange reserve position to meet additional demand for dollars amid rising trade costs after the US-Israel strikes on Iran.

But it will be challenging to keep the rate stable in the coming days if the war prolongs, said a senior executive of the central bank.

The country's foreign exchange reserves are still rising, reaching $30.5 billion as per the International Monetary Fund's calculation, while the figure stands at $35.3 billion as per Bangladesh Bank's own calculation.

The reserve amount is enough to cover imports of more than four months, according to the central bank.

Inter-bank dollar transactions remained normal, with a stable rate at Tk122 to Tk123. The exchange rate has not yet been hit by the war on the fourth day of the Iran conflict as the Bangladesh Bank had already paused regular dollar buying from the market as a precaution to keep it afloat.

However, the dollar market seemed slightly stressed as remittance inflow from Middle Eastern countries slowed on the first two days of March as workers could not go to exchange houses amid the alarming situation, said a senior executive of a private commercial bank.

On the other hand, the cash dollar price in the kerb market increased slightly by Tk0.10 to Tk0.20 over the last two days, trading between Tk125.80 and Tk126, according to brokers. However, the price of the Saudi riyal, dirham and other Middle Eastern currencies dropped.

Speaking to The Business Standard, Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, said, "We are not worried about inflow of remittance but concerned that many workers may lose their job."

He said the central bank buys dollars only when remittance inflows exceed the holding limit of banks.

Remittance inflow still remains high even after the Iran war as the country received $377 million in remittances in the first two days of March, up from $188 million received during the same period last year, central bank data show.

Islami Bank, which is the highest remittance earner, is experiencing a normal flow of remittances even after the Iran war as workers usually send higher amounts home ahead of Eid, said a senior executive of the bank.

"The official exchange rate still remains stable but it depends on energy reserves of the government," said a senior executive of the central bank.

The Bangladesh Bank is closely monitoring exchange rate movements and will sell dollars to keep the rate stable if it sees higher demand, he added.

The central bank bought $5.4 billion from the market since the start of FY26, which contributed to rebuilding reserves.

The financial account balance stood at a surplus of $2 billion at the end of July-December of FY26, compared to $525 million during the same period last year, giving more space to the central bank to spend reserves amid rising costs.

He, however, said the Bangladesh Bank may see a major shock in remittance inflows from Middle Eastern countries if the war prolongs as more than 50% of remittances come from the Gulf.

He said exports have already slowed, and remittances will also slow down if the war affects the job market in the Middle East. In this situation, rising import costs will put pressure on the exchange rate in the near future, slightly increasing the dollar price, he opined.

Speaking to The Business Standard, Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said the exchange rate remained stable due to low import demand.

However, imports have started to rise slowly, and if demand picks up after a reduction in the lending rate, it will put pressure on the dollar market, he added.

Electricity from Bangladesh's long-awaited Rooppur Nuclear Power Plant could begin flowing into the national grid by June or early July as the authorities prepare to start loading nuclear fuel into the plant's first unit early next month.

According to project officials, preparations are underway to begin fuel loading in the first week of April. Testing and synchronisation are then expected to continue through May and June, potentially allowing the first unit to start supplying electricity to the national grid by June or July.

Initially, the plant will provide electricity on a trial basis and at irregular intervals. Gradually, the facility will move towards full-scale generation.

Project officials told The Business Standard that the first unit is expected to be ready for fuel loading by the end of March. A fuel-loading ceremony will be organised and is expected to involve senior officials from Bangladesh and Russia.

Countries generating the most electricity from nuclear power

Prime Minister Tarique Rahman is expected to inaugurate the process, while a Russian minister and other senior officials may also be present.

The head of the International Atomic Energy Agency, Rafael Grossi, is expected to attend the ceremony. Russian President Vladimir Putin may also join the event virtually, officials said.

Due to the involvement of high-level officials from both Bangladesh and Russia, the exact date for fuel loading will be finalised through mutual consultation between the two governments, they added.

Testing and synchronisation

Officials said if fuel loading begins in early April, the process of loading nuclear fuel into the first unit could be completed within about a month. After that, the reactor will go through several stages, including achieving "criticality", technical tests, and synchronisation with the national grid.

Md Anwar Hossain, secretary of the Ministry of Science and Technology, said the first unit would be fully ready for fuel loading by 27 March.

"There are some formalities to complete. Because foreign guests will attend, the schedule must be coordinated. The prime minister will formally inaugurate the fuel loading," he told The Business Standard.

However, he noted that the current global conflict situation may create some uncertainty. "Travel for guests and technical testing could face difficulties," he said.

Rooppur Nuclear Power Plant: How far along is Bangladesh’s biggest energy project?

Explaining the timeline for power generation, Anwar said fuel loading would take around four weeks, followed by several more weeks of testing and synchronisation with the grid.

"In total, it may take two and a half to three months after fuel loading before electricity can be supplied to the national grid. We hope the plant will connect to the grid in the last week of June or the first week of July," he said.

He added that the timeline could still change because of the technical nature of the process. Delays may occur if Russian technical experts cannot arrive on time or if supply chain disruptions arise due to the ongoing war.

Officials said that out of more than 2,000 tests required for the project, around 150 minor tests are still ongoing in parallel. Most of these are expected to be completed by March, while a few remaining tests can be carried out during the fuel-loading phase.

Gradual rise in generation

Project officials said the first unit will initially produce around 300 megawatts of electricity. Output is expected to increase by 10% to 15% each month.

By November, the first unit could generate about 1,100 megawatts of electricity. After the physical start-up, it may take around eight to ten months to reach the full capacity of 1,200 megawatts.

They also said plans are in place to begin fuel loading in the second unit toward the end of this year, allowing it to start power generation as well.

Dr Md Zahedul Hassan, managing director of Nuclear Power Plant Company Bangladesh Limited, said key tests such as the "hot run" and "cold run" for the first unit had already been successfully completed.

"The project is now in the final inspection stage. From a safety perspective, no major problems have been found so far," he said.

Rooppur nuclear plant project cost to rise by Tk26,181cr after exchange rate adjustment

He added that the entire process is highly sensitive and technology-driven. Each stage is being examined according to international standards, and additional tests may be conducted if necessary to ensure safety and quality.

Officials stressed that safety remains the highest priority.

"This is a major milestone for the country. However, safety comes first. In nuclear projects, the final inspection, safety clearance and official approvals determine the timeline," an official said.

Officials further noted that extra time had previously been taken during several testing phases due to safety concerns, which could also affect the production schedule.

Delays and rising costs

The Rooppur Nuclear Power Plant project has faced several delays over the years. In January, then science and technology adviser Salehuddin Ahmed said the first unit could be connected to the national grid by March, following fuel loading.

However, additional safety tests extended the timeline, preventing the plant from beginning electricity production that month.

The project, being built under an intergovernmental agreement between Bangladesh and Russia, was first launched in October 2013 when the then prime minister laid its foundation stone. Construction of the reactor and cooling dome of the first unit began in November 2017.

Initially, one unit was expected to start production in early 2021, but delays caused by the Covid-19 pandemic, the Russia-Ukraine war, and other complications pushed back the timeline.

Loan tenure for Rooppur plant extended

In December 2015, the Bangladesh Atomic Energy Commission signed a contract with Russian state company Atomstroyexport for the construction of two nuclear units with a combined capacity of 2,400 megawatts, along with equipment supply, training, and fuel provision.

In March last year, the Executive Committee of the National Economic Council approved a revised proposal increasing the project cost by Tk25,592 crore.

The project's original cost was Tk113,092.91 crore, but after the revision, it rose to Tk138,685 crore, largely due to exchange rate fluctuations and higher costs in several components.

Officials said the Covid-19 pandemic, the Russia-Ukraine conflict, and the dollar shortage have all affected the project's progress. Following the 90th joint coordination meeting between Bangladesh and Russia on 3 June 2025, the project timeline was extended.

Under the revised development project proposal, the overall completion deadline has now been set for June 2028, with the preliminary handover of the second unit expected by 31 December 2027.

Bangladesh Bank Governor Md Mostaqur Rahman has assured that the withdrawal of the central bank-appointed administrator from Nagad will be a seamless process, explicitly ruling out the possibility of any unauthorised or "overnight" takeover of the mobile financial service provider.

The assurance came today (4 March) after the administrator team of Nagad briefed the governor on the company's current status, according to a senior official of Bangladesh Bank.

At present, Md Motasem Billah, a director of Bangladesh Bank, is serving as administrator at Nagad.

Central bank spokesperson Arief Hossain Khan told TBS that a special inspection at Nagad had uncovered extensive irregularities, while members of the previous board remain absent. He reiterated that the institution is owned by the Department of Posts.

"Nagad has not yet received a full licence from the Bangladesh Bank and is operating under an interim approval. We appointed an administrator because transactions involving nearly 4-5 crore customers are linked to this institution," he said.

The spokesperson alleged that parties outside the Department of Posts who previously held ownership stakes had engaged in such significant irregularities that, if the company were valued today, their net assets would be deeply negative. "There is no scope for them to return," he added.

Search for foreign investors

In August last year, former governor Ahsan H Mansur had said at an event in Dhaka that the government had decided to transfer Nagad to the private sector.

Subsequently, during the final phase of the interim government, Jamaat-e-Islami MP Barrister Mir Ahmad Bin Quasem Arman expressed interest on behalf of a foreign entity in investing in Nagad.

At the time, it was stated that if any credible foreign investor showed interest, necessary steps would be taken in coordination with the government.

Under the current governor, a fresh meeting was held today with Nagad's administrators to review the institution's position.

Forensic findings

Following the fall of the Awami League government on 5 August 2024, the Bangladesh Bank had decided on 21 August to appoint an administrator to oversee Nagad. The following day, central bank director Muhammad Badiuzzaman Dider was appointed administrator, alongside six supporting officials.

A subsequent inspection by the central bank found evidence of financial fraud through the creation of fictitious distributors and agents, as well as the issuance of excess electronic money without corresponding cash backing. The inspection identified discrepancies amounting to Tk2,356 crore.

The administrator at the time prepared a list of six officials allegedly responsible for creating unauthorised distributors and forwarded it to the Department of Posts for legal action. Letters were also sent seeking action against individuals involved in Nagad's operations.

The administrator team further informed the postal authorities that Tk1,711 crore had been siphoned off through 41 distributor accounts opened without approval. These accounts were reportedly designated for the distribution of government allowances.

In June last year, the Bangladesh Bank stated in a press release that Nagad had issued at least Tk645 crore in electronic money without depositing equivalent funds, causing financial losses to the Department of Posts and, by extension, the government.

Under the Bangladesh Bank Order, 1972, the sole authority to issue money on behalf of the state rests with the central bank.

The spokesperson said an internationally reputed audit firm KPMG has been engaged to complete a full forensic audit of Nagad. The findings of the international firm have reportedly corroborated the irregularities detected by the central bank's inspection team.

Following 5 August 2024, the chief executive officer Tanvir Ahmed ceased attending office. Executive directors Niaz Morshed (Elite) and Maruful Islam (Jhalak), deputy chief marketing officer Khandaker Mohammad Solaiman (Solaiman Sukhan), and human resources official Anik Barua were also absent.

After the administrator assumed charge on 21 August, they were dismissed. Several of the dismissed individuals were linked to ownership of Nagad.

While it’s tempting to assume the dollar’s long-lost “safety” bid has returned since the weekend Iran attacks, it’s not as clear-cut as it seems and owes more to relative energy plays. Yet the implications of the market response may be just as powerful.

Ever since Donald Trump’s return to the White House last year, the dollar has waned even during periods of market anxiety and volatility, due in ​large part to US economic policy uncertainty and both domestic and geopolitical upheaval.

Reversing years of dollar over-valuation is a key tenet of the Trump administration’s economic plan. But the greenback’s diminished haven role in times of ‌global political or financial stress suggests foreign investors - already up to their eyeballs in US assets - have changed their behaviour.

So it was remarkable that the dollar jumped across the board after last weekend’s extraordinary bombing campaign by US and Israeli forces against Iranian targets, including the assassination of Supreme Leader Ali Khamenei and the wave of regional violence that’s followed.

The crux of the move hinged more on the inevitable energy price dynamics rather than any dash for dollars per se. In fact, it was more a default move out of the currencies of economies ​worst hit by an outsized and protracted energy price squeeze.

DOLLARS BY DEFAULT

With the US now a net exporter of total petroleum and energy products in general, the initial 10 percent surge in world oil prices on Monday hurt other ​major currencies much more due to fears of a major demand hit if the supply hiatus persists for several weeks or even months.

That’s why other traditional havens such as Japan’s yen , caught no safety bid this time around and plunged over 1 percent against the dollar on Monday given Japan’s big energy import bill and the fact that about a third of its energy imports comes through the Strait ​of Hormuz.

China too is a big consumer of oil now stuck in those contentious waterways, particularly deeply discounted Iranian crude that’s sanctioned in the West and now also in limbo. The recently high-flying yuan turned tail on Monday and dropped 0.8 percent as the ​situation unfolded.

“This isn’t a friendly outcome for the Northern Asian currencies,” said Societe Generale currency strategist Kit Juckes, adding that the most important indication from Trump so far has been that the US action will take weeks, not days.

For Europe, the calculation is compounded by its exposure to natural gas after the shipping attacks effectively closed the Hormuz route, a conduit for 20 percent of worldwide liquefied natural gas shipments and up to 30 percent of crude oil.

Benchmark European gas prices surged by almost 50 percent at one point on Monday to their highest in more than ​a year, closing up 35 percent and prompting the European Union’s gas supply group to schedule an emergency meeting for Wednesday.

A line chart of the price of the European gas benchmark contract in euros per megawatt hours (MWh) since October 1, showing increasing volatility since January.

A line chart of the price of the European gas benchmark contract in euros per megawatt hours (MWh) since October 1, showing increasing volatility since January.

The US supplied 58 percent of the European Union’s LNG last year. Qatar, which accounted for 6 percent of the bloc’s imports, shut down its ​production plants on Monday after attacks from Iran.

The euro fell 1 percent against the dollar to its lowest in more than a month.

The Swiss franc’s long-standing and often unwelcome haven status remains in play - but it’s complicated by the Swiss National Bank’s battle against deflation ‌and its restated commitment to intervene to sell francs to cap the unit.

READY RECKONERS?

As to the overall economic hit from an oil spike worldwide, Barclays economists assume every sustained $10 per barrel rise in crude prices takes up to 0.2 percentage point off global growth. And if a wave of forecasts of $100-plus per barrel were to prove accurate, then that could well bite.

As it stands, however, Monday’s net Brent crude price rise of $5 to $77 per barrel will be a much more modest blow - and the moves so far would barely have any significant demand impacts on the US itself.

Calculations then turn to whether oil price pressure becomes an economic depressant or inflation aggravator. With US core inflation running above 3 percent, ​that could argue for more focus on the latter and ​for keeping US interest rates high through the year - another support for the dollar.

But, as so often with Middle East conflicts, the initial ready-reckoners on global economic hits all hinge on duration of conflict and the energy supply disruption.

Trump has indicated the military campaign will run for four or five weeks and, likely riffing off that, prediction markets such as Polymarket see a 63 percent chance Trump will ​call a halt by the end of this month.

And yet most of the thinking on currency reactions is not strictly calculations of dollar hoarding or cross-border dash ​for safety - rather they seem ⁠just like relative economic assessments emanating from energy exposure.

But for all that, it can have a powerful and looping effect.

Barclays’ rule of thumb for the dollar, for example, is that it gains between 0.5 percent and 1.0 percent for every $10 increase in oil.

If dollar‑denominated energy prices rise and stay high, pushing the exchange rate up with them, that would both worsen the energy shock for overseas economies and drive the dollar even higher in a self‑reinforcing loop.

No one would want that scenario - least of ⁠all Washington.

Bangladesh will face higher import and export costs if the US and Israel’s war against Iran prolongs, as shipping and airfreight charges have already started to rise, and cargo is being diverted along longer shipping and air routes.

Industry insiders say importing raw materials such as cotton and other factory inputs from the US and Europe might become more expensive, possibly driving up production costs at local mills and factories.

Since the war began on Saturday, at least six international airlines, including Qatar, Kuwait, Oman, and Air Arabia, have suspended cargo operations from Hazrat Shahjalal International Airport (HSIA), according to Kabir Ahmed, former president of the Bangladesh Freight Forwarders Association.

He said airlines that are still flying from Dhaka are carrying limited cargo, leaving more than 1,200 tonnes, particularly garments, stranded at the airport.

According to Ahmed, exporters may have to reroute shipments via China, Malaysia, and Hong Kong to reach Europe and the US, which is likely to increase costs.

Bangladesh usually uses Colombo, Singapore, and Port Klang in Malaysia as feeder ports. Smaller vessels carry cargoes from Chattogram to those seaports and feed large mother vessels. Most cargo then travels to Europe and the US via the Suez Canal or around the Cape of Good Hope.

Two years ago, shipping companies reduced Suez Canal use after Houthi attacks following Israel’s Gaza offensive. Vessels taking the Cape of Good Hope must travel nearly 5,000 kilometres further and burn more fuel, prompting higher freight charges.

“This time too, shipping companies have begun raising rates. International buyers may pass these costs onto local suppliers through discounts or cost-sharing requests,” said Ahmed.

He added that exports and imports are unlikely to face a full stoppage, though transportation costs will rise.

A more serious concern is energy supply.

Iran’s Revolutionary Guards have declared the Strait of Hormuz closed and vowed to fire on any ship attempting to pass, threatening a critical maritime artery through which about one‑fifth of the world’s oil flows.

Reports say around 150 vessels were stranded near the strait yesterday, and at least four tankers had been damaged, as insurers cancel war risk cover for Gulf transits.

About 90 percent of Bangladesh’s imported oil passes through this strait.

The closure has already contributed to a double-digit rise in global oil prices, and government agencies are evaluating alternative energy sources amid concern about fuel supply and inflationary pressures.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh’s trade flow may manage to keep moving thanks to alternative channels and continued Suez Canal access.

“But freight costs will rise as shipping lines increase vessel fares. Rising liquefied natural gas prices will also push up production costs,” he added.

Meanwhile, Masrur Reaz, chairman of Policy Exchange, said insurance premiums have already increased, and rerouted freight is likely to push up the cost of international trade.

Abdullah Al Mamun, spokesperson for the Bangladesh Textile Mills Association (BTMA), said supply chain disruptions during conflict inevitably raise business costs, though alternative sourcing from Asian markets such as China and India can reduce risks.

Taslim Shahriar, deputy general manager of Meghna Group of Industries, said freight rates and global edible oil prices have already been affected.

“Freight for palm oil imports from Malaysia and Indonesia has risen by $8 to $10 per tonne. Soybean oil prices have increased by $30 to $40 per tonne, while palm oil is up $10 to $20 per tonne since the escalation,” he said.

Biswajit Saha, director of corporate and regulatory affairs at City Group, added that prolonged closure of the Hormuz Strait could cause problems, but short-term disruptions of a week or ten days are unlikely to create major difficulties.

Mohammed Monsur, general secretary of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association, said regional instability is a concern ahead of the summer season, when Bangladesh’s vegetable exports to the Middle East can quadruple.

Anup Kumar Saha, executive director of Akij Insaf Group, said the country currently holds sufficient wheat stock to meet domestic demand for at least two months, providing some short-term relief.

The Dhaka stock market suffered its sharpest single-day decline in six years today as escalating tensions in the Middle East rattled global energy markets, raising fears of higher import costs, inflation and broader economic disruption in Bangladesh.

The benchmark Dhaka Stock Exchange (DSE) DSEX index plunged 208 points, or 3.77%, to close at 5,325 the biggest one-day drop since 9 March 2020, when the index fell 279 points following the outbreak of Covid-19.

The blue-chip DS30 index also slumped 85 points, or 4.01%, to settle at 2,050.

Market breadth remained sharply negative, with 349 issues declining against only 31 advancing, while 11 remained unchanged.

Turnover, however, rose 13% to Tk885 crore, signalling heavy selling as investors rushed to offload holdings. The bourse's market capitalisation shrank by Tk12,800 crore in a single session.

The selloff came as global markets reeled from widening conflict in the Middle East following US and Israeli strikes on Iran.

The escalation drove up global oil and gas prices, intensifying concerns over energy supply disruptions and their potential impact on import-dependent economies such as Bangladesh.

Moniruzzaman, managing director of Prime Bank Securities, told The Business Standard that the geopolitical conflict has already pushed up global gas and oil prices, raising fears that Bangladesh's import bill could increase significantly.

He warned that any disruption in fuel imports could hamper power generation and industrial output, particularly as the country approaches peak summer demand. A slowdown in industrial activity, combined with higher energy costs, could further exacerbate inflationary pressures.

Against such uncertainty, investors opted for caution, triggering widespread selling across sectors.

He added that trading is likely to remain volatile in the coming sessions, depending on developments in the Middle East and trends in global energy markets.

According to EBL Securities, the market's brief recovery in the previous session was abruptly reversed as panic-driven selloffs swept across the trading floor. Investors were rattled by mounting concerns over the macroeconomic repercussions of prolonged Middle East tensions, particularly the risks of fuel and power supply disruptions in Bangladesh.

Speculation over a possible transition in regulatory leadership further added to the cautious mood, accelerating the market's free-fall, it said.

The turmoil was not confined to Bangladesh. A global equity selloff intensified as surging energy prices raised alarms about the broader economic outlook. Europe's benchmark STOXX 600 index fell 2.7% in early trading, following a 1.7% drop a day earlier.

In Asia, markets in South Korea, Japan, India, China and Vietnam also recorded steep losses, according to international media reports.

Energy markets experienced dramatic swings. Benchmark Asian LNG prices surged nearly 40% on Monday, while European wholesale gas prices jumped between 35% and 40%.

US natural gas futures climbed almost 6%. The spike followed reports that Qatar had halted liquefied natural gas production, prompting precautionary shutdowns of oil and gas facilities across the region. Qatari LNG accounts for roughly one-fifth of global supply.

Bangladesh, which relies heavily on imported fuel, is particularly exposed to disruptions in the Strait of Hormuz.

Industry officials compared the situation to the aftermath of Russia's 2022 invasion of Ukraine, when LNG prices spiked sharply and supply constraints led to prolonged power outages.

Government officials and company executives said they do not expect an immediate supply shock but acknowledged that sustained price increases would strain the economy.

"The real question is where prices will go," one executive said. "Prices could rise manyfold, and frankly, we simply cannot afford that."

Oil prices surged on Monday (2 March) and shares slid as military conflict in the Middle East looked set to last weeks, sending investors flocking to the relative safety of the dollar and gold.

Brent jumped 4.5% to $76.07 a barrel, though it had briefly topped $82.00 at one stage, while US crude climbed 3.9% to $69.59 per barrel. Gold rose 1.0% to $5,327 an ounce.

Military strikes by the United States and Israel on Iran showed no sign of lessening, while Iran responded with missile barrages across the region, risking dragging its neighbours into the conflict.

President Donald Trump suggested to the Daily Mail the conflict could last for four more weeks, while posting that attacks would continue until US objectives were met.

All eyes were on the Strait of Hormuz, where around a fifth of the world's seaborne oil trade flows and 20% of its liquefied natural gas. While the vital waterway has not yet been blocked, marine tracking sites showed tankers piling up on either side of the strait wary of attack or maybe unable to get insurance for the voyage.

"The most immediate and tangible development affecting oil markets is the effective halt of traffic through the Strait of Hormuz, preventing 15 million barrels per day (bpd) of crude oil from reaching markets," said Jorge Leon, head of geopolitical analysis at Rystad Energy.

"Unless de-escalation signals emerge swiftly, we expect a significant upward repricing of oil."

A prolonged spike in oil prices would risk reigniting inflationary pressures globally, while also acting as a tax on business and consumers that could dampen demand.

OPEC+ did agree on a modest oil output boost of 206,000 barrels per day for April on Sunday, but a lot of that product still has to get out of the Middle East by tanker.

"The nearest historical analogue in our view is the Middle East oil embargo of the 1970s, which increased oil prices by 300% to around $12/bbl in 1974," said Alan Gelder, SVP of refining, chemicals and oil markets at Wood Mackenzie.

"That is only US$90/bbl in 2026 terms. Eclipsing this in today's market concerned about significant losses of supply seems very achievable."

That would be expensive for Japan, which imports all its oil, sending the Nikkei down 1.4%, with airlines among the hardest hit. Chinese blue-chips went their own way and held steady.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%.

And it's a big US data week

In the Middle East, the UAE and Kuwait temporarily closed their stock markets citing "exceptional circumstances".

For Europe, EUROSTOXX 50 futures shed 1.4% and DAX futures slid 1.3%. On Wall Street, S&P 500 futures and Nasdaq futures both lost 0.6%.

The oil shock rippled through currency markets with the dollar a main beneficiary. The US is a net energy exporter and Treasuries are still considered a liquid haven in times of stress, shoving the euro down 0.2% to $1.1788.

While the Japanese yen is often a safe harbour, the country imports all of its oil making the flows more two-way. The dollar added 0.1% to 156.25 yen, while gaining on the Australian dollar, which is often sold as a liquid proxy for global risk.

In bond markets, 10-year Treasury yields steadied at 3.970%, having briefly touched an 11-month low of 3.926%.

Bonds had gained a bid on Friday when UK mortgage lender MFS was placed into administration following allegations of financial irregularities. Its collapse stoked wider credit fears, with well-known big banks among its lenders. MFS had borrowed 2 billion pounds ($2.69 billion).

The news slugged banking stocks and combined with jitters over AI-related stocks to hit Wall Street more broadly.

Investors also have to weather a squall of US economic data this week, including the ISM survey of manufacturing, retail sales and the always vital payrolls report.

Any weakness could shake confidence in the economy after a disappointing fourth quarter, but would also likely narrow the odds on rate cuts from the Federal Reserve.

Markets currently imply a 50% chance of an easing in June and about 60 basis points of cuts this year.