Global energy and financial bodies warn of lasting shock from Middle East war
The knock-on effects are expected to extend beyond energy markets, with shortages of key inputs threatening production across multiple industries, including agriculture
WASHINGTON DC, April 14, 2026 — The heads of the International Energy Agency [IEA], International Monetary Fund [IMF] and World Bank Group [WBG] have warned that the ongoing war in the Middle East is delivering a “substantial, global and highly asymmetric” shock to the world economy, with low-income and energy-importing countries bearing the brunt.
In a joint statement issued after a high-level coordination meeting held in Washington on April 13, the three institutions said surging prices for oil, gas and fertilisers are already fuelling concerns over food security, job losses and economic instability worldwide.
The leaders noted that while some energy producers in the Middle East have suffered steep declines in export revenues, the broader global impact has been uneven, with vulnerable economies facing the greatest strain.
“The situation remains very uncertain,” the statement said, pointing to continued disruption in shipping through the Strait of Hormuz — a critical artery for global energy supplies. Even if normal shipping resumes, they cautioned, it could take considerable time for commodity markets to stabilise, with fuel and fertiliser prices likely to remain elevated due to infrastructure damage.
The knock-on effects are expected to extend beyond energy markets, with shortages of key inputs threatening production across multiple industries, including agriculture. The institutions also highlighted wider socio-economic consequences, including forced displacement, job losses and a downturn in travel and tourism.
The meeting came ahead of the release of key economic assessments, including the IEA’s monthly Oil Market Report and the IMF’s World Economic Outlook, both expected to provide updated insights into the scale of the crisis.
Officials said their teams are working closely at both global and national levels to support affected countries through coordinated policy advice. The IMF and World Bank are also prepared to provide financial assistance where necessary.
“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 would work with other international organisations to support recovery efforts.
They emphasised that sustained coordination would be essential to help lay the foundations for a more resilient global economy capable of delivering stability, growth and jobs in the aftermath of the crisis.
https://thecooperator.news/world-bank-imf-and-iea-form-joint-taskforce-over-middle-east-war-shock/
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