May 29 (Reuters) – Leaders from key international organizations, including the International Energy Agency, International Monetary Fund, World Bank, and World Trade Organization, issued a joint warning on Friday that the ongoing Middle East conflict is placing significant strain on global energy supplies and disproportionately affecting vulnerable economies.
The military conflict involving the United States, Israel, and Iran has disrupted international trade, created instability in financial markets, and heightened concerns regarding global energy security, particularly regarding the Strait of Hormuz—a critical pathway for oil and gas transportation.
According to the global institutions, while the world economy continues to demonstrate resilience, the conflict is having a disproportionate impact on less developed nations. Elevated fuel and fertilizer prices, increased market uncertainty, and potential job losses are creating significant challenges for these vulnerable economies.
The leaders convened on Thursday to develop coordinated strategies for addressing the economic repercussions of the ongoing conflict, as outlined in their collective statement.
U.S. President Donald Trump indicated he would make a determination on Friday regarding a potential agreement with Iran aimed at extending their existing ceasefire, with the understanding that any deal would necessitate reopening the waterway and reducing Tehran’s nuclear capabilities.
“Should maritime shipping fail to return to normal conditions, accelerated depletion of global oil reserves before the peak summer demand in the Northern Hemisphere would progressively increase threats to fuel security, market stability, and overall economic resilience,” the joint statement emphasized.
(Reporting by Chris Thomas in Mexico City; Editing by Sanjeev Miglani)
