ADDIS ABABA, April 14 – The International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group have warned that the ongoing war in the Middle East is triggering a global energy and economic shock, according to a joint statement issued after a high-level coordination meeting on Monday.
The institutions said the conflict is driving increases in oil, gas and fertilizer prices, with impacts being felt across multiple economies, adding that the effects are uneven, with energy-importing and low-income countries most affected.
According to the statement, disruptions to shipping through the Strait of Hormuz have affected the movement of key commodities, including crude oil and liquefied natural gas. The institutions noted that shipping flows through the route have yet to fully normalise.
They also stated that higher energy and fertilizer costs are affecting food production and prices. In addition, some oil and gas producers in the Middle East have recorded declines in export revenues.
The organisations said the conflict has led to job losses, reduced travel and tourism activity, and population displacement in affected areas further adding that supply disruptions are impacting critical sectors including energy, food and manufacturing.
The meeting forms part of a coordination framework established earlier in April to address the economic impact of the conflict. Under the framework, the institutions are aligning policy responses and support measures.
The IMF and World Bank said they may provide financial support to countries facing severe shocks, alongside policy guidance tailored to country-specific needs. Further assessments are expected in upcoming reports, including the IEA Oil Market Report and the IMF World Economic Outlook.
