Leaders from the International Energy Agency (IEA), the International Monetary Fund (IMF), and the World Bank Group convened today as part of a coordinating group formed in early April to enhance their response to the energy and economic repercussions of the ongoing conflict in the Middle East. Following their discussions, they released a joint statement.
“As we indicated earlier this month, the ramifications of the conflict are significant, widespread, and uneven, hitting energy-importing nations the hardest, particularly those with lower incomes. The crisis has resulted in increased prices for oil, gas, and fertilizers, raising alarms about food security and potential job losses. Additionally, several oil and gas exporters in the Middle East have experienced a sharp decline in revenue from exports.
The current situation remains highly unpredictable, and maritime traffic through the Strait of Hormuz has yet to return to normal. Even once regular shipping resumes, it will take time for global supplies of essential commodities to approach pre-conflict levels. Consequently, fuel and fertilizer prices may stay elevated for an extended duration due to the damage inflicted on infrastructure. Disruptions in supply chains are expected to affect the energy sector, agriculture, and other industries. Furthermore, the conflict has led to the displacement of populations, job disruptions, and a decline in travel and tourism, which may take significant time to recover.
During our meeting today, we exchanged our most recent evaluations in anticipation of the IEA’s monthly Oil Market Report and the IMF’s World Economic Outlook, scheduled for release this Tuesday, April 14. We also addressed the circumstances of the countries most severely impacted by these developments and discussed the responses from our organizations. Our teams are collaborating closely, including at the country level, to utilize our combined expertise and assist nations through customized policy recommendations. In the cases of the IMF and the World Bank, we are prepared to offer financial assistance where necessary.
We will maintain vigilant oversight and continually evaluate the effects of the conflict on energy markets, the global economy, and specific nations. Additionally, we aim to coordinate our responses and support for our member countries, collaborating with other international organizations as needed to establish a foundation for a resilient recovery that fosters stability, growth, and job creation.
