- IEA, IMF, World Bank and WTO Warn Middle East War Is Deepening Energy, Food and Economic Risks
The heads of the International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization have warned that the war in the Middle East is creating severe and uneven pressures on energy supplies, food security and economic activity across the world.
In a joint statement issued in Washington on May 29, 2026, the four institutions said the conflict was disproportionately affecting vulnerable countries through higher fuel and fertiliser prices, increased uncertainty and growing risks to jobs and livelihoods.
The statement followed a May 28 meeting of a high-level coordination group established in April to strengthen the institutions’ collective response to the energy, trade and economic impacts of the war.
“The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions,” the heads of the institutions said.
They noted that while the global economy continues to show resilience, poorer and more exposed economies are bearing the heaviest burden.
“Higher fertilizer prices are of particular concern as many countries enter the planting season,” the statement added.
The warning is significant for developing economies, particularly in Africa, where fuel and fertiliser price shocks can quickly transmit into food inflation, transport costs, fiscal pressures and household hardship.
The institutions also raised concern over the state of global oil inventories, warning that stocks are being drawn down at a record pace following major supply losses through the Strait of Hormuz.
“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz,” the statement said.
They cautioned that if shipping flows do not return to normal, continued rapid depletion of oil inventories ahead of peak summer demand in the Northern Hemisphere could create increasing risks for fuel security, market conditions and wider economic resilience.
The Strait of Hormuz remains one of the world’s most important energy transit routes, making any disruption a major concern for oil-importing countries and global commodity markets.
For countries such as Ghana, the risks are direct. Higher crude oil and refined product prices can raise fuel import bills, increase pressure on exchange rates and worsen inflationary conditions.
Rising fertiliser costs could also affect agricultural production, especially as farmers prepare for planting seasons, with potential consequences for food supply and food prices.
The IEA, IMF, World Bank and WTO said their meeting focused on assessing the impact of the conflict, discussing the situation in the most affected countries and regions, and coordinating support for countries in need.
“We also explored options to further enhance collective support through multilateral and bilateral actions,” the statement noted.
The institutions stressed the need for close monitoring of fertiliser supply chains, energy and economic developments, as well as government policy responses.
They said they are tracking and analysing measures taken by governments to address the economic impact of the conflict, with the aim of promoting transparency, sharing lessons and identifying emerging risks.
The joint statement reflects growing concern that the war could deepen global economic fragmentation if countries respond with restrictive trade measures, fuel subsidies, export controls or emergency interventions that may provide short-term relief but distort markets.
For commodity-importing economies, the challenge is particularly difficult. Governments must balance consumer protection, food security, fiscal discipline and exchange-rate stability at a time when external shocks are becoming more frequent and costly.
The statement also suggests that global institutions are preparing for a more coordinated intervention framework should the crisis worsen.
“We will remain in close contact as the situation evolves and continue coordinating our efforts to support the countries most affected and global economic stability,” the institutions said.
The joint intervention brings together the world’s leading energy, financial, development and trade institutions at a time when the economic consequences of the Middle East war are widening beyond the conflict zone.
For African economies, the message is clear: the next phase of the crisis may not be fought only through oil prices, but through fertiliser access, food security, trade flows, inflation and fiscal resilience.
The warning also comes as several countries are already struggling with tight public finances, high debt-service burdens and limited policy buffers.
If energy and fertiliser pressures persist, governments may face renewed pressure to subsidise fuel, support farmers, stabilise food prices and protect vulnerable households.
The coordination by the IEA, IMF, World Bank and WTO signals that the global economic fallout from the war is now being treated as a systemic risk — one requiring not only national responses, but multilateral cooperation to protect vulnerable economies and preserve market stability.
