IEA, IMF, World Bank heads warn of impacts of Iran war

The heads of the International Energy Agency (IEA), International Monetary Fund (IMF) and World Bank Group on Monday warned of the negative impacts of the war against Iran waged by the United States and Israel.

The three leaders met as part of a coordination group set up on April 1 to maximize their institutions' response to the energy and economic impacts of the war in the Middle East.

"The impact of the war is substantial, global and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries. The shock has led to higher oil, gas and fertilizer prices, triggering concerns about food security and job losses as well. Some oil and gas producers in the Middle East have also seen a dramatic loss of export revenue," the heads of the organizations said in a statement.

Even after a resumption of regular shipping flows through the Strait of Hormuz, it will take time for global supplies of key commodities to move back toward their pre-conflict levels, while fuel and fertilizer prices may remain high for a prolonged period given the damage to infrastructure, said the statement.

Due to supply disruptions, shortages of key inputs are likely to have implications for energy, food and other industries. The war has also forcibly displaced people, impacted jobs and reduced travel and tourism, which may take time to reverse, it added.

Teams from the organizations are working closely, including at country level, to leverage their respective expertise and help countries through tailored policy advice and, in the case of the IMF and World Bank, financial support where needed, according to the statement.

The three leaders vowed to continue to monitor closely and assess the impact of the war on energy markets, the global economy and individual countries, and to coordinate response and support to their respective member countries.