US–Iran War: W’Bank, IMF, WTO and Others Warn It Harms the Most Vulnerable Nations

Ndubuisi Francis in Abuja

Heads of the World Bank, International Monetary Fund (IMF), World Trade Organisation (WTO), and the International Energy Agency (IEA) met over the weekend in Washington D.C., United States, to evaluate the Middle East conflict and its effects on energy supplies, food security, and economic activity worldwide.

They observed that, although the global economy remains resilient, the war’s impact is uneven, disproportionately hurting the most vulnerable nations with higher fuel and fertilizer prices, greater uncertainty, and increased risks to employment and livelihoods.

A joint statement signed by World Bank President Ajay Banga, IMF Managing Director Kristalina Georgieva, WTO Director General Dr. Ngozi Okonjo‑Iweala, and IEA Executive Director Dr. Fatih Birol noted that the agencies are monitoring and analysing government measures to mitigate the conflict’s economic effects, aiming to promote transparency, share lessons, and spot emerging risks.

The statement read, “The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions.”

“While the global economy continues to show resilience, the effects of the conflict are disproportionately affecting the most vulnerable countries through higher fuel and fertilizer prices, increased uncertainty, and risks to jobs and livelihoods. Higher fertilizer prices are of particular concern as many countries enter the planting season.”

“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz.”

“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience.”

“We met to take stock of the impacts, discuss the situation in the most affected countries and regions, and coordinate our support to those in need. We also explored options to enhance collective support through multilateral and bilateral actions.”

Heads of the agencies emphasized the need for close monitoring of fertilizer supply chains, energy and economic developments, and policy responses.

“In this regard, we are tracking and analysing measures taken by governments to address the economic impact of the conflict, with a view to promoting transparency, sharing lessons, and identifying emerging risks.”

“We will remain in close contact as the situation evolves and continue coordinating our efforts to support the countries most affected and global economic stability,” the statement added.