WASHINGTON: The heads of the International Energy Agency (IEA), the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO) have warned that the ongoing conflict in the Middle East is placing significant strain on global energy supplies and disproportionately impacting vulnerable economies.
The US-Israel war involving Iran has disrupted international trade, unsettled financial markets, and heightened concerns over global energy security, particularly due to risks surrounding the Strait of Hormuz — a critical maritime corridor for global oil and gas shipments.
In a joint statement issued following a meeting on Thursday, the leaders of the four institutions noted that while the global economy has remained relatively resilient, poorer nations are facing growing challenges from rising fuel and fertilizer prices, increased economic uncertainty, and potential job losses.
The institutions discussed coordinated responses to mitigate the economic fallout of the conflict and to support countries most exposed to energy and trade disruptions.
Meanwhile, US President Donald Trump said he would decide on Friday whether to pursue a potential agreement with Iran to extend the ceasefire. According to Trump, any such deal would require the reopening of the Strait of Hormuz and the dismantling of Tehran’s capacity to develop nuclear weapons.
The warning underscores growing international concern that prolonged instability in the Middle East could have far-reaching consequences for global energy markets, trade flows, and economic growth, particularly in developing countries.
By Reuters
