Bangladesh has formally requested a temporary sanctions waiver from the United States to import roughly 600,000 metric tonnes of Russian diesel to cover two months of demand as its energy crisis intensifies, Reuters reported on Monday, with officials pointing to Washington’s recent 30-day waiver granted to India as precedent.
The move comes as the International Monetary Fund (IMF) warns the Iran war is driving a global energy shock, with disrupted oil flows pushing up fuel costs, tightening financial conditions, and placing acute pressure on import-dependent economies now scrambling to secure emergency supplies.
Bangladesh relies on imports for roughly 95% of its energy needs. The high import reliance has left the country vulnerable to severe energy disruptions, with the near-total suspension of vessel movements through the Strait of Hormuz blocking scheduled deliveries from Gulf countries. Rising global prices and supply shortages have forced the Bangladeshi government to scramble for alternative supplies from India and China, implement fuel rationing and seek out over $2.5 billion in external financing to support energy imports. The heavy reliance on imported fossil fuels, including LNG and diesel, costs the country roughly $12 billion annually, creating significant pressure on foreign exchange reserves and causing high inflation.
Oil & Gas prices remain elevated as the Middle East conflict enters a fifth week. Brent crude for May delivery was up 0.3% to trade at 113.00 per barrel at 10.20 am ET, while the corresponding WTI Crude contract gained 2.7% to change hands at $102.40/bbl.
Reports of Iran-backed Houthi militants entering the conflict, coupled with the arrival of thousands of U.S. troops in the region, have heightened fears of a broader ground offensive. On Saturday, the Houthis claimed responsibility for firing ballistic missiles at sensitive Israeli military sites in southern Israel, marking their first direct military involvement since the war began. Meanwhile, Trump has threatened to blow up Iran’s oil facilities if no ceasefire deal is reached.
The IMF on Monday warned that the Iran war is triggering a severe energy-driven shock to the global economy, with disruptions to oil flows pushing up crude prices and tightening financial conditions, while raising the cost of fuel, food, and fertilizers worldwide; the impact is falling hardest on import-dependent and low-income countries, where higher energy bills are feeding inflation, slowing growth, and forcing governments to seek emergency supply arrangements or external support as the crisis deepens.
By Alex Kimani for Oilprice.com
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