Forming a team to enhance the response to the repercussions of the Iran war on energy and the economy
In a joint statement, the international bodies said that the coordination team will assess the severity of the repercussions in different countries, coordinate the response mechanism, and mobilize stakeholders to provide support to countries in need.
serious disorder
The International Monetary Fund had previously warned that the war in the Middle East had caused serious disruption to the economies of the frontline states and was casting a shadow over the prospects of many economies that had just begun to recover from previous crises.
In a blog post published by senior economists at the IMF, the International Monetary Fund said that the war waged by the US and Israeli strikes on Iran on February 28 caused a global shock, but an asymmetric one, and led to a tightening of financial conditions.
Extent of damage
According to the IMF, Iran's closure of the Strait of Hormuz and the resulting damage to regional infrastructure have caused the greatest disruption to the global oil market in history. Much will depend on the duration of the conflict, its scale, and the extent of the damage to infrastructure and supply chains.
The IMF noted that low-income countries are particularly vulnerable to food insecurity, given rising food and fertilizer prices, and may need more external support at a time when many advanced economies are reducing their international aid.
The heads of the International Energy Agency, the International Monetary Fund, and the World Bank agreed today to form a coordination team to enhance the response to the repercussions of the war in Iran and the ongoing conflict in the Middle East on the energy and economic sectors.
The international bodies stated in a joint statement that the coordination team will assess the severity of the repercussions in various countries, coordinate the response mechanism, and mobilize stakeholders to provide support to the countries in need.
Serious Disruption
The International Monetary Fund had previously warned that the war in the Middle East has caused serious disruptions to the economies of the confronting countries, casting a shadow over the prospects of many economies that have just begun to recover from previous crises.
In a blog published by senior economists at the Fund, the International Monetary Fund stated that the war initiated by the American and Israeli strikes on Iran on February 28 caused a global shock, but it was uneven, leading to a tightening of financial conditions.
Extent of Damage
According to the Fund, Iran's closure of the Strait of Hormuz and the damage to regional infrastructure have caused the largest disruption in the global oil market in history. Much will depend on the duration of the war, the extent of its spread, and the magnitude of the damage it will inflict on infrastructure and supply chains.
The International Monetary Fund pointed out that low-income countries are particularly vulnerable to the risk of food insecurity due to rising food and fertilizer prices, and may require additional external support at a time when many advanced economies are reducing their international aid.
