Instability is created in the price of fuel oil and gold in international market due to the current conflict going on between Iran and Israel. The important share markets in the world is about to fall. A big fall in price took place in Indian share market. If the current conflicting situation goes on, then it can also threaten the economy of Bangladesh, according to the experts. As a result, the market of commodity goods might be unstable and if the war spread further in the Middle East, then the remittance flow might be shrunk, which in turn will decrease the reserve.
State minister for Commerce Ahsanul Islam Titu said, “We’re in discomfort due to the current conflict between Iran and Israel. The market will be affected by the international events. We’re keeping an eye that the negative impact of these events can’t affect the market.”
According to the officials of the Ministry of Commerce, the government is closely monitoring the entire situation after Iran's missile attack on Israel. At the same time, if the conflict between the two countries becomes more intense, what kind of impact can be have on the economy and the international market system is also being monitored.
Fear of instability in Fuel oil, gold market and stock market: After Iran's attack on Israel, many people thought that the price of oil would increase in the world market, but in reality the opposite has happened. Oil prices were slightly lower in Asian trade Monday morning. According to the British media BBC, at the end of last week, the price of oil per barrel reached 92.18 dollars. It was the highest since October last year. Since then, it has gradually fallen to 90.45 dollars. It fell another 20 to 30 cents on Monday morning. However, market analysts think that oil prices may rise suddenly if instability increases in the Middle East.
Not only fuel oil, gold market also volatile: Global benchmark gold rose 0.3 percent in the spot market on Monday, the Economic Times said. The price settled at 2,350 dollars 59 cents per ounce. However, on the same working day, the price of US benchmark gold fell by 0.3 percent in the futures market. Then, the price settled at 2,366 dollars 40 cents per ounce. Market analysts say that despite the temporary fall in prices, the threat of counter-attacks between Iran and Israel may cause Middle Eastern countries to reduce oil production. There is a risk of increase in fuel prices.
Country's economy might be at risk: MK Mujeri, the former director general of BIDS, a Bangladesh development research institute, said that the economy will be at risk if the Iran-Israel conflict continues for a long time or if war spreads in the Middle East due to its influence.
The former Chief Economist of Bangladesh Bank said, “If something happens in the Middle East, the first thing will affect the remittance income, which will put more pressure on country's reserves. Besides, since Bangladesh is an import-dependent country, the supply of daily commodities may be disrupted due to war in the Middle East. People of the country are already suffering from high inflation. If inflation increases due to another hike in fuel prices, it will not only have a negative impact on macroeconomic indicators, but will also entail suffering to the common people due to higher prices of commodities.”
(The report was published on print and online versions of The Bangladesh Pratidin on April 16 and rewritten in English by Lutful Hoque Khan)
