The closure of the Strait of Hormuz in late February has triggered an energy shock that is being felt far beyond the Middle East, with Bangladesh emerging as one of the countries most vulnerable to the fallout.
Energy Transitions Commission in its report released on Thursday says countries dependent on imported fossil fuels are facing the harshest consequences as supply disruptions and soaring prices shake economies
The Energy Transitions Commission says countries dependent on imported fossil fuels are facing the harshest consequences as supply disruptions and soaring prices shake economies
As global fuel supplies tightened and prices surged, shortages spread across Bangladesh's economy. Industries faced energy rationing, LPG supplies became uncertain and rising fuel costs pushed pressure deeper into households, transport and agriculture.
Higher fuel prices have intensified inflationary pressure across multiple sectors in Bangladesh
The report warned that the crisis has exposed the structural weakness of economies heavily dependent on imported fossil fuels.
Titled Lessons on Energy Security after the Hormuz Crisis, the report argues that the world's energy system remains dangerously vulnerable because a large share of oil and gas supplies passes through a small number of strategic chokepoints.
"The impacts are being felt across all regions, but the effects are felt most acutely in emerging and import-dependent economies," the report said.
Bangladesh imports nearly all of its fossil fuel requirements and has limited strategic reserves, leaving it highly exposed to disruptions in global markets.
Countries such as Pakistan, Sri Lanka and the Philippines are facing similar challenges as oil prices remain above $100 per barrel and LNG prices continue to climb.
Jules Kortenhorst said the crisis reflects deeper vulnerabilities in the global energy system.
"For decades we have built an energy system that is wasteful, insecure and volatile," he said.
"Three quarters of the world's population depend on fuels they do not control, priced in markets they do not influence, vulnerable to shocks they cannot prevent."
According to the report, the closure of the Strait disrupted 18.4 million barrels of oil flows per day - nearly one-fifth of global supply - along with around 20 percent of global LNG trade.
The International Energy Agency estimated that global oil supply fell by eight million barrels per day in March alone, almost double the peak disruption seen during the 1973 Arab oil embargo.
The economic effects have spread rapidly across Asia. Pakistan and Sri Lanka introduced four-day working weeks to reduce energy use, while Japan relaxed office dress codes to cut cooling demand. South Korea delayed coal plant retirements amid supply concerns.
In Bangladesh, rising LNG prices have increased electricity generation costs, while higher fuel prices have intensified inflationary pressure across multiple sectors.
The report argues that the crisis also highlights the strategic value of accelerating clean energy deployment.
Adair Turner said renewable energy systems are less vulnerable because they depend mainly on infrastructure rather than continuous fuel imports.
"Clean energy systems are more distributed, more efficient and less exposed to the price shocks created by continuous dependence on traded fuels," he said.
The commission identified renewable electricity, electric transport, cleaner cooking technologies and improved energy efficiency as key measures for strengthening long-term energy security.
