Conflict Fueling Oil Price Surge Threatens Pakistan, Bangladesh Economies

Prolonged US-Iran conflict is fueling oil price surge, posing significant risks to Pakistan and Bangladesh's economies. Both countries heavily rely on imported fuel, making them vulnerable to sustained increases in crude oil and diesel prices.

Economists warn that limited fuel inventories and weak economic buffers could quickly transmit higher global energy costs into domestic prices, raising the cost of transport, electricity, and food for millions of households.

Jamus Lim, Associate Professor of Economics at ESSEC Business School Asia-Pacific, notes that Pakistan and Bangladesh are likely to face significant inflationary pressures in the near term due to their limited inventory buffers.