The International Energy Agency (IEA), International Monetary Fund (IMF) and World Bank said Wednesday they will establish a coordination group to maximize their response to the energy and economic fallout from the war in the Middle East.
In a joint statement, the heads of the three institutions said the conflict has triggered "one of the largest supply shortages in global energy market history," with wide-ranging global impacts that are "substantial, global, and highly asymmetric," disproportionately affecting energy-importing economies, particularly low-income countries.
They said the shock is already being transmitted through higher oil, gas and fertilizer prices, while raising concerns over food costs. Disruptions have also spread to global supply chains—including helium, phosphate and aluminum—and tourism flows due to flight interruptions at major Gulf hubs.
The institutions warned that rising market volatility, currency weakness in emerging economies and mounting inflation concerns could lead to tighter monetary policy and weaker global growth.
To address these risks, the coordination group will assess the severity of impacts across countries through joint data-sharing on energy markets, trade flows, fiscal pressures and inflation trends. It will also coordinate policy responses, including targeted advice, evaluation of financing needs and potential provision of financial support, including concessional funding and risk mitigation tools.
The group will further mobilize multilateral, regional and bilateral partners to ensure coordinated support for countries most affected by the crisis, particularly those with limited policy space and high debt levels.
The institutions said they will work closely with other international organizations and reaffirmed their commitment to safeguarding global economic and financial stability, strengthening energy security and supporting recovery, growth and job creation.
