Iran has officially declared the closure of the Strait of Hormuz, though its Revolutionary Guard Corps had already kept this waterway shut for a few days after the US and Israel launched joint airstrikes on key installations across the Persian country on February 28.
As a result, the entire world has faced energy supply disruptions. This is because 20 percent of the world's crude oil flows through this passage, a 33-kilometre-wide waterway connecting the Persian Gulf to the Arabian Sea. The conflict led crude oil prices to jump to over $110 a barrel on Friday, which had been trading at just over $70 before the war.
Now the fear for fuel shortage crisis has worsened across the world following Iran's recent rejection of a 15-point ceasefire proposal put forward by the United States. Conversely, Tehran has offered its own five-point plan, which includes a halt to the killing of its officials, guarantees that no further war will be waged against Iran, reparations for the conflict and Iran's exercise of sovereignty over the Strait of Hormuz.
Unfortunately, a ceasefire deal in the Iran war is not in sight. The reason is that the US is talking about a truce while planning to send more troops to the Middle East for a possible ground intervention in Iran.
This means the tripartite war will continue, with the Strait of Hormuz remaining closed for an indefinite period, though Iran has assured that Bangladeshi ships carrying oil and liquefied natural gas (LNG) will be permitted safe passage as Tehran considers Bangladesh a friendly nation.
Such Iranian assurances bring relief to Bangladesh. Dhaka mostly buys its LNG and crude oil from Middle Eastern states. According to reports, around 1.5 million tonnes of crude oil are likely to arrive from the UAE and Saudi Arabia if safe passage is allowed.
Bangladesh also buys LPG from Middle Eastern countries in bulk quantities. We import around 70 percent of our annual LPG requirement of 1.7-1.8 million tonnes from Qatar, Kuwait and Oman.
With the blockade of the Strait of Hormuz, Bangladesh is already feeling the pinch of an energy crunch. Diesel and petrol shortages have emerged as thousands of motorists are seen waiting in queues for hours at fuel stations across the country. This has become an everyday picture, though the government has confirmed that there are sufficient fuel stocks in the country.
However, cashing in on the situation, an unscrupulous syndicate has emerged to hoard fuel across the country, aiming to create an artificial shortage. The government, however, has come down hard on the cartel by forming vigilant teams in all 64 districts to stop illegal fuel trading.
As the government is dealing with the issue with special attention, it is expected that the fuel crisis will ease with the identification of alternative procurement sources.
