The heads of the International Energy Agency, International Monetary Fund, World Bank Group, and World Trade Organization warned on May 28 that the Middle East war is straining global energy supplies and food security.
They said global oil inventories are being drawn down at a record pace due to disruptions through the Strait of Hormuz.
What did the IEA, IMF, World Bank, and WTO say about the war?
The four agencies said the war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity.
The most vulnerable countries are disproportionately affected through higher fuel and fertilizer prices, increased uncertainty, and risks to jobs and livelihoods. The global economy as a whole continues to show resilience.
The agency heads met as part of a coordination group set up in April. It was created to maximize the institutions' response to the war's energy, trade, and economic impacts.
How is the war affecting global oil supplies?
Global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz, the statement said.
The agencies warned that continued rapid depletion ahead of peak summer oil demand could threaten fuel security. The risks intensify if shipping flows through the strait do not return to normal.
Continued depletion would also weigh on market conditions and broader economic resilience, the statement added.
Why are higher fertilizer prices a concern?
Higher fertilizer prices are of particular concern as many countries enter the planting season, the statement said. Costlier inputs could worsen food security in vulnerable economies.
The agencies highlighted the importance of closely monitoring fertilizer supply chains, energy markets, and policy responses. They are tracking measures taken by governments to address the war's economic impact.
How will the IEA, IMF, World Bank, and WTO respond?
The four agencies said they met to take stock of the impacts and discuss the situation in the most affected countries and regions. They also coordinated support to those in need.
They explored options to further enhance collective support through multilateral and bilateral actions. The agencies aim to promote transparency, share lessons, and identify 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 joint statement said.
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