IEA, IMF, World Bank warn of global impact from Middle East war

The heads of the International Energy Agency, International Monetary Fund and World Bank Group say the war in the Middle East is having a substantial and uneven global impact, hitting energy-importing and low-income countries the hardest.

In a joint statement issued after a coordination meeting, the institutions said the shock had driven up oil, gas and fertilizer prices, raising concerns over food security and employment, while some energy exporters in the region had suffered sharp losses in export revenues.

They said the situation remained highly uncertain, noting that shipping through the Strait of Hormuz had yet to return to normal levels and that even after flows resumed, it would take time for global supplies of key commodities to recover.

The organisations said supply disruptions were likely to lead to shortages of critical inputs, with knock-on effects for energy, food and other industries, while the conflict had also displaced people, hurt jobs and reduced travel and tourism.

They said they had reviewed their latest assessments ahead of the upcoming releases of the IEA's Oil Market Report and the IMF's World Economic Outlook, and discussed conditions in the countries most affected by the shock.

The institutions said their teams were working closely to provide policy advice and, where needed, financial support, adding that they would continue to monitor developments and coordinate responses to support member countries and promote a stable recovery.