The Heads of the International Energy Agency, International Monetary Fund, and World Bank Group convened today as part of the coordination group established in early April to strengthen their collective response to the energy and economic consequences arising from the ongoing war in the Middle East. Following their meeting, the institutions released a joint statement outlining their assessment of the evolving global situation and the risks it poses to energy markets, trade flows, and economic stability. The statement emphasized that the impact of the war is substantial, global, and highly uneven, with the most severe consequences being felt by energy-importing countries, particularly low-income economies. The disruption has led to higher prices for oil, natural gas, and fertilizers, raising concerns over food security, inflationary pressures, and potential job losses across multiple regions. At the same time, some oil and gas-producing economies in the Middle East have experienced significant declines in export revenues due to market instability and disrupted trade flows. A key area of concern remains the continued uncertainty surrounding maritime activity through the Strait of Hormuz. Shipping routes have yet to fully normalize, and even after regular flows resume, global supply chains for critical commodities are expected to take time to return to pre-conflict levels. The prolonged disruption is likely to keep fuel and fertilizer prices elevated for an extended period, particularly given damage to infrastructure and ongoing logistical bottlenecks. These constraints are also contributing to shortages of essential inputs, which are expected to affect energy production, agriculture, and broader industrial activity. The conflict has also had wider socio-economic consequences, including population displacement, reduced employment opportunities, and disruptions to travel and tourism sectors. These effects are expected to persist, with recovery timelines likely to vary significantly across regions depending on exposure and resilience. During the meeting, the three institutions reviewed updated assessments ahead of the release of the International Energy Agency’s monthly Oil Market Report and the International Monetary Fund’s World Economic Outlook, both scheduled for April 14. They also discussed the specific conditions facing the most affected countries and evaluated ongoing response measures being implemented at both global and national levels. The institutions highlighted that their teams are working in close coordination, including at the country level, to combine technical expertise and policy guidance. In cases where needed, financial support from the International Monetary Fund and the World Bank Group is being deployed to help countries manage immediate pressures and maintain macroeconomic stability. The International Energy Agency continues to contribute its sectoral expertise on energy market dynamics and supply security.Looking ahead, the organizations reaffirmed their commitment to continuous monitoring of the crisis and its evolving impact on global energy markets and economic conditions. They emphasized the importance of coordinated international action, leveraging partnerships with other global institutions where necessary, to support affected countries. The shared objective remains to help lay the groundwork for a resilient recovery that restores stability, supports growth, and protects employment in vulnerable economies worldwide. Subscribe to get the latest posts sent to your email.

Source: https://solarquarter.com/2026/04/17/iea-imf-and-world-bank-group-warn-of-global-risks-as-middle-east-conflict-disrupts-energy-markets/