The International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group have announced plans to establish a joint coordination group aimed at strengthening their response to the far-reaching energy and economic consequences of the ongoing war in the Middle East.
In a joint statement released on Wednesday, the heads of the three institutions said the conflict has triggered one of the largest supply shortages in global energy market history, with widespread disruptions to livelihoods and economic systems across regions.
They noted that the crisis is having a disproportionate impact on energy-importing nations, particularly low-income countries, as rising prices for oil, gas, and fertilizers ripple through global markets.
The situation has also heightened concerns over food prices and inflation, while disrupting supply chains for key commodities such as helium, phosphate, and aluminum.
According to the statement, global tourism has also been affected due to flight disruptions at major Gulf transit hubs, further compounding economic uncertainty.
Emerging economies are experiencing currency pressures and heightened inflation risks, raising the likelihood of tighter monetary policies and slower growth.
The institutions emphasized the need for a coordinated global response amid growing uncertainty, especially for countries with limited fiscal space and high debt burdens.
To address these challenges, the newly formed coordination group will focus on assessing the severity of the crisis across countries and regions through enhanced data sharing on energy markets, trade flows, inflation trends, and supply chain disruptions.
It will also work to align policy responses, including providing targeted policy advice, evaluating financing needs, and facilitating financial support, particularly concessional funding and risk mitigation tools, for vulnerable nations.
In addition, the group plans to mobilize support from multilateral, regional, and bilateral partners to ensure an efficient and unified response to the crisis.
The three institutions reaffirmed their commitment to safeguarding global economic and financial stability, strengthening energy security, and supporting affected countries toward recovery, sustainable growth, and job creation.
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