The International Monetary Fund (IMF), the World Bank Group, and the International Energy Agency (IEA) will collaborate to respond to the economic consequences of the war in Iran, Reuters reports.
The three organizations have agreed to exchange data, coordinate policy advice, and mobilize relevant stakeholders to support countries in need of assistance, according to a joint press release published Wednesday. They will also assess the potential financing needs of countries, according to Agerpres.
„The impact is substantial, global, and extremely asymmetric, disproportionately affecting energy importers, especially low-income countries,” the heads of the three institutions stated.
The conflict in the Middle East has disrupted global supply chains and put pressure on some developing economies, increasing the prices of oil, gas, and fertilizers, while at the same time causing concerns about rising food prices. Brent crude oil was trading around $100 a barrel on Wednesday, about 40% higher than before the US-Israeli attack on Iran on February 28.
Furthermore, supply chains for helium, phosphate, aluminum, and other commodities have been affected, as has air travel, the heads of the three international organizations noted.
Beyond the disruption of energy supplies, rising food and fertilizer prices are affecting some countries in the Middle East and Latin America, with low-income economies at risk of food insecurity, the IMF warned in a blog post.
The interruption of fertilizer supplies from the Persian Gulf is occurring just as the planting season for agricultural crops in the Northern Hemisphere begins, threatening harvests throughout the year.
The conflict in Iran and its economic impact will certainly be an important topic addressed during the spring meetings of the IMF and World Bank, from April 13-18.