World economic institutions have warned about the consequences of the Middle East war
The heads of several international economic and energy institutions have warned that the war in the Middle East has increased pressure on the global energy market and has caused the most harm to vulnerable economies.
The heads of the International Monetary Fund, the World Bank, the World Trade Organization, and the International Energy Agency announced in a joint statement that the war between the United States and Israel with Iran has led to disruptions in global trade, financial market fluctuations, and increased concerns about energy supply, especially through the Strait of Hormuz.
According to Reuters, these institutions have emphasized that despite the resilience of the global economy, poorer countries have been more affected than others by the rise in fuel and fertilizer prices, increased economic uncertainty, and threats to job opportunities.
The statement also warned that if the movement of ships does not return to normal, the rapid depletion of global oil reserves during the peak summer consumption in the Northern Hemisphere could create further risks for energy security, market stability, and the global economy.
The heads of these organizations met on Friday to discuss strategies to counter the economic consequences of the war.