Bangladesh, May 6 -- Factory owners in Ashulia and Gazipur are struggling to keep production lines running as power cuts stretch for three to four hours daily and diesel prices keep climbing.

The ripple effect from the ongoing Iran conflict has pushed global oil prices past $115 a barrel, and Bangladesh - which imports almost all its fuel - is feeling it directly.

"We are already running on thin margins of 4 to 8 percent," said one senior executive from a major garment group who didn't want to be named.

"Now raw material costs are up 10 to 15 percent, and in some cases certain chemicals have tripled.

On top of that, we're burning diesel to keep the machines going."

Frequent power disruptions have led to production drops of 10-15 per...