Following the spread of war across the Middle East, a sudden cloud of uncertainty has descended upon Bangladesh’s processed food exporters and other trading firms. In effect, it is not possible to send goods neither by sea nor by air. As a result, a paralysis has emerged on both the import and export fronts.

On Monday, Iran formally declared the closure of the Strait of Hormuz. Iranian authorities warned that any vessel attempting to pass through the strait would be set ablaze by the Revolutionary Guard and the Navy. The announcement has further complicated an already precarious situation.

Bangladesh conducts trade with seven countries—Iran, Iraq, Qatar, Kuwait, Bahrain, the United Arab Emirates (UAE) and Saudi Arabia—through the Strait of Hormuz.

According to data from Bangladesh Bank and the National Board of Revenue (NBR), during the 2024–25 financial year Bangladesh imported goods worth approximately US$6 billion from these countries. In the same period, exports to these destinations totalled around US$750 million.

Exporters state that numerous Bangladeshi firms ship ready-made garments, processed foods, vegetables, fruits, frozen fish, caps and footwear to the Middle East. If the conflict is prolonged, small and medium-sized enterprises in particular will face severe financial strain. Without a swift resolution, some factories risk closure.