The International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group have agreed to establish a joint coordination group to address the economic and energy impacts of the ongoing war in the Middle East.
In a joint statement issued on Wednesday, March 01, the three institutions warned that the conflict has caused significant disruptions across the region and triggered one of the largest supply shortages in the history of global energy markets.
They said the effects of the crisis are widespread but uneven, with energy-importing nations, particularly low-income countries, bearing the brunt. “It is already transmitted through higher oil, gas, and fertiliser prices, and is triggering concerns about food prices as well. Global supply chains—including helium, phosphate, aluminum, and other commodities, are affected, as is tourism due to flight disruptions at key Gulf hubs.
“The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth,” the statement read.
The institutions said the scale and uncertainty of the crisis make coordinated action essential, particularly for countries with limited fiscal space and high debt burdens.
“To ensure a coordinated response, we have jointly agreed to form a group that will assess the severity of impacts across countries and regions through coordinated data sharing on energy markets and prices, trade flows, fiscal and balance of payments pressures, inflation trends, export restrictions of key commodities, and supply chain disruptions,” the group said.
They added that the mechanism would support policymakers through shared analysis and could include targeted policy advice, financial support, including concessional financing, and the use of risk mitigation tools.
The organisations also said they would work with other international partners to deliver effective and timely support to countries most affected by the crisis.
“The group will work with and draw on other international organizations’ expertise as needed. We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms,” the statement added.