PARIS. The International Energy Agency (IEA), the International Monetary Fund (IMF) and the World Bank Group (B.M.) warned of “substantial, global and highly asymmetric” impact of the war in the Middle East, which “disproportionately” affects energy importers, particularly low income countries.
The directors of the three international institutions, Kristalina Georgieva (IMF), Ajay Banga (WB) and Fatih Birol (IEA) held a meeting this Monday in Paris, France, within the framework of the coordination group established in early April to optimize the response of the organizations to the energy and economic repercussions of the war in the Middle East.
They expressed concern about food security and job losses arising from the impact of the crisis on oil, gas and fertilizer prices, while some oil and gas producers in the region have also experienced a drastic decline in their export earnings.
Furthermore, they warn that even after regular maritime flows resume, it will take time for global supplies of key raw materials to return to their pre-conflict levels, so fuel and fertilizer prices could remain high for an extended period.
They warn that, as a result of supply disruptions, shortages of key inputs are likely to have repercussions on the energy, food and other sectors.
On the other hand, the war has also caused the forced displacement of people, affected employment and reduced travel and tourism, “a situation that could take time to reverse.”
Attacks in the Middle East have increased since February 28 when the United States and Israel carried out Operation Epic Fury against Iran, which has bombed nearby countries.