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The benchmark index of the Dhaka Stock Exchange suffered its steepest single-day fall in six years on Tuesday, as panicked investors rushed to exit the market amid escalating tensions in the Middle East.

The DSEX slid 209 points, or 3.80 per cent, to close at 5,325 — the sharpest drop since March 18, 2020, when the pandemic shock rattled markets. The fall came just a day after the index had recovered 72 points.

Heavy selling pressure gripped the market from the opening bell and intensified throughout the session, reflecting deep investor anxiety over potential macroeconomic fallout.

Oil Shock Fears

Investors are increasingly worried about fuel and power supply disruptions, said Akramul Alam, head of research at Royal Capital.

Reports that fuel oil reserves could last only 15 days further rattled sentiment, as the Iran-Israel conflict has already driven global oil and gas prices sharply higher.

Iran has reportedly closed the Strait of Hormuz following joint US and Israeli strikes, raising fears of prolonged disruption. Nearly 90 per cent of Bangladesh’s primary energy imports pass through this critical route.

Brent crude surged more than 8 per cent on Tuesday to $84 a barrel and is up nearly 25 per cent this week. International gas prices also spiked, jumping as much as 50 per cent on Monday and climbing further on Tuesday.

Bangladesh’s energy security is heavily reliant on Middle Eastern suppliers such as Saudi Arabia, the United Arab Emirates and Qatar, making the economy vulnerable to Gulf disruptions. Reports that QatarEnergy has halted LNG production have added to concerns.

“Any disruption in fuel imports could hamper power generation and industrial output, potentially slowing overall economic activity,” Alam said.

Economists warn that prolonged conflict could mean longer shipping routes, soaring freight costs and higher energy bills — directly raising production costs, widening the import bill and putting renewed pressure on foreign exchange reserves. Rising fuel costs could also fuel inflation and hurt export competitiveness, particularly in energy-intensive sectors.

Blue Chips Take a Hit

On the trading floor, losers overwhelmed gainers. Of 391 issues traded, 349 declined, 31 advanced and 11 remained unchanged.

Turnover jumped 13 per cent to Tk 8.9 billion as investors sold aggressively, often at losses.

Major blue-chip stocks — including BRAC Bank, Islami Bank, BAT Bangladesh, Beximco Pharma and Square Pharma — collectively dragged the index down by about 60 points.

The DS30 index, comprising 30 leading companies, plunged 86 points to 2,050, with all constituents closing lower.

“Some investors sold their shares out of fear,” said Md. Sajedul Islam, a DSE director, though he added that certain vested groups might also have influenced market movements.

The Chittagong Stock Exchange mirrored the slump. Its CASPI index dropped 414 points to 15,085, while the CSCX fell 270 points to 9,228.

The sharp sell-off underscores mounting investor concerns that geopolitical shocks could compound existing economic pressures at home.