Pakistan, Bangladesh face economic squeeze as US-Iran crisis widens

Pakistan and Bangladesh are entering the latest phase of the Iran-conflict" class="entity-link entity-event" data-entity-id="136843" data-entity-type="event">US-Iran conflict with thinner cushions than many Asian economies, raising the risk that another oil shock could quickly spill into higher food, transport and electricity costs for millions of people, analysts have said.Both economies rely heavily on imported fuel, leaving them particularly vulnerable to any prolonged spike in oil and diesel prices.Jamus Lim, an associate professor of economics at ESSEC Business School Asia-Pacific, said both economies could face significant inflationary pressure in the near term, noting that weak inventory buffers meant the impact on domestic prices would be “relatively quick”.