The heads of major global financial and trade institutions have warned that the ongoing conflict in the Middle East is severely straining global energy supplies and hitting vulnerable economies the hardest.
In a joint statement issued on Friday, the leaders of the International Energy Agency (IEA), International Monetary Fund (IMF), World Bank, and World Trade Organization (WTO) noted that while the world economy has shown resilience, the conflict is disproportionately penalizing poorer nations through surging fuel and fertilizer prices.
The ongoing geopolitical hostilities have disrupted international trade, rattled financial markets, and raised deep concerns over shipping security through the Strait of Hormuz—a vital maritime chokepoint for global oil and gas shipments.
Following a high-level coordination meeting on Thursday, the institutions warned that global energy security faces a critical window ahead of the peak summer demand season.
"If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience," the joint statement read.
Meanwhile, diplomatic efforts remain active as U.S. President Donald Trump indicated he would review a potential deal aimed at extending a ceasefire. Any long-term resolution would require ensuring unhindered access to international waterways and addressing broader regional nuclear security concerns.
