IMF, World Bank, IEA Caution That Middle East Crisis is Fueling Food and Job Insecurity
IMF, World Bank, and IEA have issued a warning that the crisis in the Middle East is leading to increased food insecurity, job losses, and economic instability, and they have committed to coordinated response efforts.
The International Monetary Fund (IMF), World Bank Group, and International Energy Agency (IEA) have expressed worries regarding the global economic repercussions of the intensifying crisis in the Middle East, cautioning that the conflict is exacerbating food insecurity, job losses, and wider macroeconomic instability.
Following a high-level coordination meeting at the start of the 2026 Spring Meetings in Washington on Monday, the leaders of the three institutions released a joint statement. They noted that the ongoing war has caused “substantial, global, and highly asymmetric” shocks, with the most significant effects anticipated in energy-importing and low-income nations.
The rising prices of oil, gas, and fertilizers are already reflecting the impact of the conflict on economies, heightening concerns about increasing food insecurity and escalating unemployment.
They noted that while oil-producing countries in the Middle East were grappling with interruptions to production and export revenues, economies reliant on imports are experiencing increasing cost pressures, worsening fiscal balances, and greater risks to livelihoods.
They stated, “As we mentioned earlier this month, the effects of the war are significant, worldwide, and markedly uneven, with energy importers, especially low-income countries, bearing the brunt.” The unexpected developments have resulted in increased prices for oil, gas, and fertilizers, raising alarms about food security and potential job losses.
Some oil and gas producers in the Middle East have experienced a significant decline in export revenue.
The current circumstances are still quite unpredictable, and shipping through the Strait of Hormuz has not yet returned to normal. Even with the resumption of regular shipping flows through the Strait, it will require time for global supplies of essential commodities to return to their pre-conflict levels, and fuel and fertilizer prices may stay elevated for an extended duration due to the damage to infrastructure.
“Supply disruptions are expected to lead to shortages of essential inputs, which may impact energy, food, and various other industries.”
They stated, “War has also forcibly displaced people, affected jobs, and diminished travel and tourism, which may require time to recover.”
The three institutions announced that they were increasing their engagement with national authorities to provide customized policy responses and financial support designed to stabilize economies and safeguard vulnerable populations.
They announced, “Today, we presented our most recent evaluations, prior to the publication of the IEA’s monthly Oil Market Report and the IMF’s World Economic Outlook.”
“We also examined the circumstances of the countries most impacted by the shock, along with the responses from our institutions.” Our teams are collaborating closely, including at the country level, to utilize our respective expertise and assist countries through customized policy advice and, in the case of the IMF and World Bank, financial support when necessary.
“We will maintain close oversight and evaluate the effects of the war on energy markets, the global economy, and individual nations. We aim to coordinate our response and support for our member countries, collaborating with other international organizations as necessary to establish a strong foundation for recovery that ensures stability, growth, and job creation.”
