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The International Energy Agency, International Monetary Fund and World Bank Group have agreed to collaborate on managing the energy and economic effects of the war.
The weeks-long conflict has thrown many parts of the Middle East into turmoil and precipitated one of the largest supply shortages in global energy market history.
In a joint statement on Wednesday, the IEA, IMF, and World Bank announced they would form a group to evaluate the severity of impacts across countries and regions.
The institutions will coordinate data sharing on energy markets and prices, trade flows, inflation trends, export restrictions, supply chain disruptions, and fiscal and balance of payments pressures.
The response team will deploy risk mitigation tools as appropriate, provide targeted policy advice, and assess potential financing needs, including through concessional funding.
The body will also mobilize stakeholders—multilateral, regional, and bilateral partners—to deliver synchronized support to countries, and partner with relevant international organizations.
The IEA, IMF, and World Bank said market volatility, weakening of currencies in emerging economies, and inflation expectations “raise the prospect of tighter monetary stances and weaker growth.”
The Iran war has disrupted the global supply of oil, fertilizer, helium, phosphate, aluminum, and other commodities. Travel and tourism are also affected by flight cancellations across Gulf hubs.
The prolonged blockade of the Strait of Hormuz, where about 25 to 30 percent of global oil and 20 percent of liquefied natural gas passes, has crippled shipments and energy imports.
Experts have advised Africa to brace up as countries witness higher costs of oil, gas, fertilizers, and food. Urea prices are up by 50%, while fertilizer shortages are expected to impact planting cycles.
“Low-income countries are especially at risk of food insecurity,” the IMF warned this week, adding that some may need more external support—even as such assistance has been declining.
IEA, IMF, World Bank activate response as war impacts countries
