Washington [US], May 31: The heads of the International Energy Agency, International Monetary Fund, World Bank and World Trade Organization warned on Friday that the war in the Middle East was straining global energy supplies and hitting vulnerable economies hardest.
The US-Israel war on Iran has disrupted trade, rattled financial markets and raised concerns over global energy supplies, particularly through the Strait of Hormuz, a key route for oil and gas shipments.
The global institutions said that the world economy remained resilient, but the conflict was disproportionately affecting poorer countries through higher fuel and fertilizer prices, increased uncertainty, and risks to jobs.
The heads of the groups met on Thursday to discuss how they should to the economic impact of the war, they said in a joint statement.
US President Donald Trump has said he would decide Friday over a potential deal with Iran to extend their ceasefire that would need to include opening the waterway and dismantling Tehran's capacity to make a nuclear weapon.
"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 institutions said.
The institutions urged governments to maintain close coordination and avoid measures that could further disrupt energy markets or restrict trade flows. They emphasized that ensuring the smooth movement of energy supplies and essential commodities would be critical to preventing additional inflationary pressures and safeguarding economic stability, particularly in developing nations that have limited fiscal capacity to absorb external shocks.
They also pledged to continue monitoring the evolving situation and to provide support to countries most affected by the crisis. The organizations said they stand ready to deploy financial assistance, policy advice and technical expertise to help vulnerable economies manage rising import costs, strengthen energy security and preserve growth prospects amid heightened geopolitical uncertainty.
Source: Qatar Tribune
