Bangladesh's Energy Security Crisis: A Growing Concern

The global economy is facing an energy crisis due to supply disruptions caused by the war in West Asia. The crisis began after the Covid pandemic when energy demand rebounded, but supply disruptions and low investment in exploring new oil and gas fields tightened energy markets.

In February 2022, the Russia-Ukraine war disrupted Europe's gas supply, leading to a sharp increase in oil and gas prices. This changed the global energy trade, with Europe reducing its reliance on Russian pipeline gas and increasing LNG purchases from other sources like the US and Qatar.

The US-Israel attack on Iran in February 2026 disrupted the energy corridor of the Strait of Hormuz, through which around 20 percent of global oil passed. This created the largest supply disruption in the history of the global oil market.