Baku: The Heads of the International Energy Agency, International Monetary Fund, and World Bank Group met today as part of the coordination group they established in early April to maximize their institutions’ response to the energy and economic impacts of the war in the Middle East.
According to Azeri-Press News Agency, the leaders issued a statement highlighting the substantial and global impact of the conflict, with energy importers and low-income countries being disproportionately affected. The war has resulted in increased prices for oil, gas, and fertilizers, raising concerns about food security and job losses. Additionally, some oil and gas producers in the Middle East have experienced significant declines in export revenue.
The situation remains uncertain with shipping through the Strait of Hormuz yet to normalize. Even after regular shipping flows resume, it may take time for global supplies of key commodities to return to pre-conflict levels. Fuel and fertilizer prices are expected to remain elevated due to infrastructure damage. Supply disruptions have caused shortages of essential inputs, affecting energy, food, and other industries. The war has displaced people, impacted jobs, and reduced travel and tourism, which may take time to recover.
The organizations shared their latest assessments in anticipation of the upcoming release of the IEA’s monthly Oil Market Report and IMF’s World Economic Outlook. They also discussed the situations of the countries most affected by the shock and their institutional responses. The teams are working closely to provide tailored policy advice and financial support where needed.
They emphasized their commitment to monitoring the impact of the war on energy markets, the global economy, and individual countries. The organizations plan to coordinate their response and support for member countries, working with other international organizations to establish a resilient recovery that promotes stability, growth, and jobs.