IEA, IMF, World Bank Raise Concerns Over Prolonged Fuel, Food Crisis

(MENAFN) Three of the world's most powerful economic institutions sounded a stark alarm Monday, cautioning that energy and fertilizer prices may stay painfully elevated long after shipping through the Strait of Hormuz resumes — with the heaviest burden falling on the world's poorest nations.

The International Energy Agency (IEA), the International Monetary Fund (IMF), and the World Bank Group issued a rare joint statement warning that supply chain damage and commodity flow disruptions will outlast any near-term diplomatic resolution.

The three bodies declared the Middle East war's economic fallout to be "substantial, global, and highly asymmetric," with energy-importing developing nations bearing a disproportionate share of the pain.

Rising oil, gas, and fertilizer costs are already stoking food security fears and threatening widespread job losses, the institutions warned, while certain regional producers have simultaneously suffered severe contractions in export revenues.

The statement made clear that Hormuz shipping lanes have yet to return to normal, and cautioned that even a full resumption of traffic would not immediately restore global commodity supplies to pre-conflict levels.

Cascading risks were also flagged: shortages of critical industrial inputs could ripple across energy, food, and broader economic sectors, while mass displacement, deteriorating employment conditions, and the collapse of travel and tourism were cited as slow-reversing wounds to the global economy.

"Today, we shared our latest assessments, ahead of the release this Tuesday, April 14, of the IEA's monthly Oil Market Report and IMF's World Economic Outlook. We also discussed the situations of the countries most affected by the shock as well as the responses by our institutions," the statement said.

The institutions confirmed their teams are operating in close coordination — including at the country level — deploying tailored policy guidance, and where necessary, direct financial assistance.

"Our teams are working closely, including at country level, to leverage our respective expertise and help countries through tailored policy advice and, in the case of the IMF and World Bank, financial support where needed," the statement added.

In a sweeping commitment to sustained engagement, the three bodies pledged ongoing surveillance of war-driven economic damage and coordinated support for affected member states.

"We will continue to monitor closely and assess the impact of the war on energy markets, the global economy and individual countries, and to coordinate our response and support to our member countries—working with, and drawing on, other international organizations' expertise as needed to lay the foundations for a resilient recovery that delivers stability, growth and jobs," the statement added.

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