The leaders of the International Energy Agency (IEA), the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO) reiterated the need for a coordinated response to the energy, trade, and economic impacts of the war in the Middle East, warning that global strategic petroleum reserves are being drawn down at a record pace.
In the communiqué, the agencies warned that global oil stocks are being reduced at a record pace due to the sharp loss of supply associated with the Strait of Hormuz. In the group’s assessment, if shipping flows do not return to normal, the ongoing decline in stocks ahead of the peak demand in the Northern Hemisphere summer could raise risks to fuel security, market conditions, and economic resilience.
According to the agencies, the conflict has been producing “substantial and highly asymmetric” effects on energy supply, food security and economic activity, with a disproportionate impact on the most vulnerable countries. The institutions cited rising fuel and fertilizer prices, increased uncertainty and risks to jobs and livelihoods, highlighting additional concern about fertilizers amid the start of planting season in several countries.
