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Bangladesh is among the countries most severely affected by the ongoing conflict in the Middle East, as disruptions to liquefied natural gas (LNG) supplies and rising energy prices have strained the country’s power sector, according to the International Energy Agency (IEA).
The findings were published in the IEA’s Electricity Mid-Year Update 2026, released on Thursday.
The report says emerging economies such as Bangladesh and Pakistan, which rely heavily on imported LNG, are particularly vulnerable to fluctuations in global energy prices.
Disruptions to LNG shipments through the Strait of Hormuz have pushed up import costs and interrupted supplies, forcing both countries to adopt energy-saving measures that have reduced electricity consumption.
According to the IEA, months of instability in global energy markets triggered by the Middle East conflict have increased Bangladesh’s LNG import costs, and electricity demand is likely to remain under pressure throughout this year.
Despite these challenges, global electricity demand continues to grow, driven by expanding industrial activity, rising electric vehicle adoption, increased use of air conditioning, and the rapid growth of data centres.
The IEA forecasts global electricity demand to increase by 3.6% in 2026 and 3.8% in 2027, up from 3% growth in 2025.
As a result, worldwide electricity consumption is expected to reach 30,700 terawatt-hours (TWh) in 2027, compared with 28,600 TWh in 2025.
The report also notes that disruptions to LNG transport through the Strait of Hormuz have driven natural gas prices in Asia and Europe to their highest levels since the 2022–23 energy crisis.
The surge has increased electricity generation costs and prompted several countries to introduce emergency power-saving measures.
Although additional LNG supplies from North America have helped ease some market pressure, persistently high gas prices have led several countries in Asia and Europe to increase coal-fired power generation.
At the same time, renewable energy continues to expand rapidly. The IEA projects that renewables will become the world’s largest source of electricity generation in 2026, overtaking coal after reaching parity with it in 2025.
Electricity generation from renewable sources is expected to grow by more than 8% this year, increasing renewables’ share of global power generation from 33% in 2025 to 37% by 2027.
