Heads of the World Bank, International Monetary Fund (IMF), World Trade Organisation (WTO), and International Energy Agency (IEA) have warned that the ongoing conflict in the Middle East is triggering far-reaching and uneven disruptions to global energy supply, food security, and economic stability.
The institutions made the warning at the weekend during a high-level meeting in Washington D.C., United States, where they assessed the widening economic consequences of the war.
According to the joint assessment, while the global economy continues to demonstrate resilience, the effects of the conflict are being felt most severely by vulnerable countries.
The agencies said rising fuel and fertiliser prices, heightened uncertainty, and risks to jobs and livelihoods are deepening economic pressures in developing economies.
They noted that food production systems are particularly exposed, especially as many countries enter critical planting seasons.
In a joint statement signed by World Bank President Ajay Banga, IMF Managing Director Kristalina Georgieva, WTO Director-General Dr. Ngozi Okonjo-Iweala, and IEA Executive Director Dr. Fatih Birol, the agencies warned of escalating risks if current disruptions persist.
“The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions,” the statement read.
“While the global economy continues to show resilience, the effects of the conflict are disproportionately affecting the most vulnerable countries through higher fuel and fertiliser prices, increased uncertainty, and risks to jobs and livelihoods.
”Higher fertilizer prices are of particular concern as many countries enter the planting season.”
The statement further highlighted that global oil inventories are being rapidly depleted due to significant supply disruptions linked to the Strait of Hormuz.
“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz,” it added.
The agencies cautioned that if shipping flows do not return to normal, continued depletion of oil reserves ahead of peak summer demand could worsen global fuel security and destabilise markets.
“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience,” the statement warned.
They also emphasised the need for close monitoring of fertiliser supply chains, energy markets, and policy responses to mitigate further shocks.
The multilateral organisations said they reviewed the situation in affected regions and discussed coordinated measures to support impacted economies.
“We met to take stock of the impacts, discuss the situation in the most affected countries and regions, and coordinate our support to those in need,” the statement noted.
They added that further cooperation through both multilateral and bilateral channels was being explored to strengthen global response mechanisms.
The agencies concluded that sustained monitoring and policy coordination would be essential to managing emerging risks and protecting global economic stability.
