The heads of the International Energy Agency, International Monetary Fund, and World Bank Group on Tuesday warned that the war in the Middle East is triggering a “substantial, global and highly asymmetric” shock to energy and economic systems, with low-income countries among the hardest hit.
In a joint statement following a coordination meeting in Washington, the three institutions said the conflict is driving up oil, gas and fertilizer prices, raising concerns over food security and potential job losses worldwide.
“The impact of the war is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries,” the organizations said.
The institutions noted that while some energy exporters in the Middle East have suffered sharp losses in export revenue, many import-dependent economies are facing rising costs that could strain public finances and household incomes.
Shipping disruptions through the Strait of Hormuz remain a key concern, with flows yet to fully normalize. Even if transport resumes, officials cautioned that restoring global supply levels will take time, particularly due to infrastructure damage.
“Fuel and fertilizer prices may remain high for a prolonged period,” the statement said, warning that shortages of critical inputs could ripple across sectors including agriculture, manufacturing and energy.
The organisations also highlighted broader socio-economic impacts, including displacement of populations, job losses, and a slowdown in travel and tourism effects that could persist beyond the immediate crisis.
The meeting comes ahead of key economic updates, including the IEA’s monthly oil market report and the IMF’s World Economic Outlook, both expected to provide further insight into the scale of the disruption.
Officials said their teams are working closely at both global and country levels to coordinate responses. This includes policy advice and, where necessary, financial support from the IMF and World Bank to help vulnerable countries weather the shock.
“We will continue to monitor closely and assess the impact of the war on energy markets, the global economy and individual countries,” the statement said, adding that the institutions aim to support “a resilient recovery that delivers stability, growth and jobs.”
The joint initiative, launched earlier this month, underscores growing concern among global financial and energy institutions over the cascading effects of the conflict on already fragile economies.
