• To intensify effort to contain fallout
Eromosele Abiodun and Nume Ekeghe in Washington DC
International Monetary Fund (IMF), World Bank Group, and International Energy Agency (IEA) have raised concerns over the global economic fallout from the escalating Middle East crisis, warning that the conflict is fuelling food insecurity, job losses, and broader macro-economic instability.
In a joint statement issued after a high-level coordination meeting at the commencement of the 2026 Spring Meetings in Washington yesterday, the heads of the three institutions said the ongoing war had triggered “substantial, global and highly asymmetric” shocks, with the most severe impact expected in energy-importing and low-income countries.
According to them, surging prices of oil, gas and fertilisers are already transmitting the effects of the conflict across economies, intensifying fears of worsening food insecurity and rising unemployment.
They stated that while oil-producing nations in the Middle East were contending with disruptions to output and export revenues, import-dependent economies are facing mounting cost pressures, deteriorating fiscal balances, and heightened risks to livelihoods.
They said, “As we noted earlier this month, the impact of the war is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries. The shock has led to higher oil, gas and fertilizer prices, triggering concerns about food security and job losses as well.
“Some oil and gas producers in the Middle East have also seen a dramatic loss of export revenue.
“The situation remains very uncertain, and shipping through the Strait of Hormuz is yet to normalise. Even after a resumption of regular shipping flows through the Strait, it will take time for global supplies of key commodities to move back towards their pre-conflict levels and fuel and fertiliser prices may remain high for a prolonged period given the damage to infrastructure.
“Due to supply disruptions, shortages of key inputs are likely to have implications for energy, food, and other industries.”
They added, “War has also forcibly displaced people, impacted jobs, and reduced travel and tourism, which may take time to reverse.”
The three institutions stated that engagement with national authorities was being scaled up to deliver tailored policy responses and financing support aimed at stabilising economies and protecting vulnerable populations.
They stated, “Today, we shared our latest assessments, ahead of the release of the IEA’s monthly Oil Market Report and IMF’s World Economic Outlook.
“We also discussed the situations of the countries most affected by the shock as well as the responses by our institutions. Our teams are working closely, including at country level, to leverage our respective expertise and help countries through tailored policy advice and, in the case of the IMF and World Bank, financial support where needed.
“We will continue to monitor closely and assess the impact of the war on energy markets, the global economy and individual countries, and to coordinate our response and support to our member countries working with, and drawing on, other international organisations’ expertise as needed to lay the foundations for a resilient recovery that delivers stability, growth and jobs.”
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