Global food crisis risks rise as war disrupts energy markets

The heads of the International Monetary Fund, the World Bank Group and the World Food Program held a joint meeting to assess the global economic and food security impacts of the ongoing war in the Middle East, issuing a joint statement outlining growing concerns over its far-reaching consequences.

The institutions said the conflict is severely disrupting lives and livelihoods across the region and beyond, while triggering one of the largest shocks to global energy markets in modern history.

According to the statement, the war has already led to significant instability in energy markets, raising concerns about sharp increases in oil, gas and fertilizer prices. These developments, combined with transport bottlenecks, are expected to push global food prices even higher and worsen food insecurity worldwide.

The organizations warned that import-dependent economies face particularly severe risks, while low-income countries are likely to be the hardest hit. Rising fuel costs are already placing an increasing burden on populations, they noted.

“Spikes in fuel prices and potential sharp increases in food prices are especially concerning where fiscal space is constrained and debt burdens are already high,” the statement said, adding that such conditions limit governments’ ability to provide relief to vulnerable populations.

The joint statement also highlighted the risk of a worsening global food crisis, with increasing food shortages and inflation expected to disproportionately affect poor and vulnerable communities.

Debt-strapped economies could face further strain, while governments may find it increasingly difficult to shield citizens from the economic fallout, the institutions said.

The IMF, World Bank and WFP emphasized that they are closely monitoring the situation and will continue coordinating efforts to support affected countries.

“In accordance with our respective mandates, and building on existing response mechanisms, we will provide support to safeguard lives and livelihoods,” the statement said, adding that efforts will focus on fostering a resilient recovery aimed at stability, growth and job creation.