Middle East Conflict Threatens Global Oil Supplies

The world's reliance on Middle Eastern oil is being put to the test as conflict in the region threatens global supplies. The Gulf countries supply around one-third of the world's seaborne crude, and disruptions to these exports could have far-reaching consequences.

The modern economy was built on abundant and affordable fossil fuel, with coal powering the Industrial Revolution and oil taking over after World War II. Today, oil and gas still account for more than half of global energy consumption despite the growth of renewables.

While renewables are booming, they are not yet able to replace oil and gas entirely. Aviation, shipping, and heavy industry all rely on fossil fuels, and it will take decades for the transition to electric vehicles and renewable energy to be complete.

The world is unlikely to move beyond oil and gas anytime soon, and moving beyond the Middle East as their cheapest and most reliable supplier is even less realistic. The region holds 33% of proven global oil reserves and 21% of natural gas reserves, making it a critical source of energy for the global economy.

Bangladesh, which depends heavily on imported energy and export-oriented trade, would be particularly affected by any prolonged disruption to Gulf supplies. The country's economy has grown rapidly in recent years, but it is still vulnerable to price shocks and supply disruptions.