International Organizations Issue Joint Warning on Negative Impact of Middle East Conflict

Golden Finance reported on May 30 that the International Energy Agency, International Monetary Fund, World Bank, and World Trade Organization issued a joint statement on May 29, warning of the substantial and highly asymmetric impact of the Middle East conflict on global energy supply, food security, economic activity, and other sectors. The statement noted that while the global economy continues to demonstrate resilience, the rise in fuel and fertilizer prices, heightened uncertainty, and risks to employment and livelihoods caused by the Middle East conflict are disproportionately affecting the most vulnerable countries. With some nations entering the planting season, the surge in fertilizer prices is particularly concerning. The statement emphasized the importance of closely monitoring fertilizer supply chains, energy and economic conditions, and policy responses. It also highlighted that due to shipping "blockages" in the Strait of Hormuz, global oil inventories are declining at a record pace. If shipping does not return to normal, global oil inventories will continue to drop rapidly ahead of the peak summer demand season in the Northern Hemisphere, posing increasing risks to fuel security, market stability, and economic resilience.