IEA, IMF, and World Bank warn of global energy and economic shock

On April 13 in the U.S. capital of Washington, leaders of three major international institutions—the International Energy Agency (IEA), the International Monetary Fund (IMF), and the World Bank Group—met to coordinate a response to the impacts of the Middle East conflict on the global energy market and economy. In a joint statement following the meeting, the three organizations said the conflict had generated "large, global, and asymmetric" impacts, most severely affecting energy-importing countries, particularly low-income economies. The shock has led to soaring prices of oil, gas, and fertilizers, raising concerns about food security and the risk of unemployment. Some oil-exporting countries in the region are also witnessing a sharp decline in export revenues. The international organizations noted that shipping activity through the Strait of Hormuz has yet to return to normal. Even if the route is fully reopened, the restoration of essential goods supply will take time, while ...