Leaders of the International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group have agreed to establish a coordination group to strengthen their response to the energy and economic consequences of the war in the Middle East.
In a joint statement, they expressed concern that the conflict has severely disrupted lives and livelihoods across the region and caused one of the most significant supply shortages in the history of global energy markets.
They observed that the effects are wide-ranging, global, and uneven, with energy-importing nations—particularly low-income countries—bearing the brunt.
“It is already transmitted through higher oil, gas, and fertiliser prices, and is triggering concerns about food prices as well. Global supply chains—including helium, phosphate, aluminum, and other commodities—are affected, as is tourism due to flight disruptions at key Gulf hubs.
“The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth,” the statement issued on Wednesday partly read.
The institutions noted that in a period of heightened uncertainty, it is essential to work together to track developments, align analysis, and coordinate support for policymakers navigating the crisis.
They emphasised that this is particularly important for countries most vulnerable to the downstream effects of the conflict, especially those with limited policy capacity and high debt levels.
“To ensure a coordinated response, we have jointly agreed to form a group that will assess the severity of impacts across countries and regions through coordinated data sharing on energy markets and prices, trade flows, fiscal and balance of payments pressures, inflation trends, export restrictions of key commodities, and supply chain disruptions,” the group said.
They added that the joint response may involve targeted policy guidance, evaluation of financing needs, and provision of financial assistance—including concessional funding—alongside the use of risk mitigation tools where necessary.
The organisations also indicated that they would engage relevant stakeholders, including multilateral, regional, and bilateral partners, to deliver effective and coordinated support to affected countries.
“The group will work with and draw on other international organizations’ expertise as needed. We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms,” the statement added.