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World News

Global agencies form coordination team to tackle Middle East war impact on energy, economy

The heads of the International Monetary Fund, International Energy Agency, and World Bank announced the formation of a joint coordination team to address the growing economic and energy fallout from the ongoing war in the Middle East.

TAS News Service

info@thearabianstories.com

Thursday, April 2, 2026

NEW YORK – In a joint statement, the three institutions said the conflict has caused significant regional disruptions and triggered one of the largest supply shortages in the history of the global energy market.
“In this highly uncertain environment, it is important that our institutions join forces to monitor developments, unify analyses, and coordinate support for policymakers to overcome this crisis,” the organisations said.

The newly established team will assess the scale of the crisis across affected countries, align response mechanisms, and mobilise international stakeholders to support nations most in need.

According to the statement, the coordinated response may include tailored policy advice, assessments of financing needs, and the provision of financial assistance—ranging from concessional and interest-free loans to broader risk mitigation tools.

The conflict, now in its second month, has expanded across the Middle East, disrupting energy supplies and weighing on global economic growth.

The agencies warned that the impact is “enormous, global, and uneven,” with energy-importing nations, particularly low-income countries, bearing the brunt of the crisis.

They noted that the war has already driven up prices for oil, gas, and fertilisers, heightened concerns over food costs, and disrupted global supply chains for key commodities including helium, phosphates, and aluminium. The tourism sector has also been adversely affected.

The organisations further cautioned that heightened market volatility, weakening currencies in emerging economies, and rising inflation concerns could lead to tighter monetary policies and slower economic growth.

“We are committed to cooperating to protect global economic and financial stability, enhance energy security, and support affected countries and peoples in achieving sustainable recovery, growth, and job creation through reforms,” the statement added.

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