The heads of the International Monetary Fund (IMF), World Bank Group, International Energy Agency, and World Trade Organization have warned that disruptions to oil shipments through the Strait of Hormuz are rapidly draining global crude inventories and increasing risks to fuel security, food production, and economic stability.
In a joint statement issued after a high-level coordination meeting, the four institutions said the war in the Middle East is creating significant disruptions across energy, trade, and food markets, with the heaviest burden falling on vulnerable economies.
“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 organizations said.
While noting that the global economy has remained resilient so far, the institutions warned that higher fuel and fertilizer prices are amplifying pressures on developing countries, threatening jobs, livelihoods, and agricultural production.
“Higher fertilizer prices are of particular concern as many countries enter the planting season,” they said.
The warning comes as oil markets grapple with the loss of supplies moving through the Strait of Hormuz, one of the world’s most critical energy chokepoints, through which roughly a fifth of global oil consumption typically passes.
The four institutions said global oil inventories are being depleted at an unprecedented pace as countries draw down stockpiles to offset supply disruptions.
“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.
“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience.”
The meeting was convened under a coordination framework established in April to strengthen cooperation among the four organizations in responding to the economic consequences of the Middle East conflict.
The institutions said they reviewed conditions in the most affected countries and regions and discussed ways to strengthen support through multilateral and bilateral initiatives.
“We met to take stock of the impacts, discuss the situation in the most affected countries and regions, and coordinate our support to those in need,” the organizations said.
The group also highlighted growing concerns about fertilizer supply chains, which are closely linked to energy markets because natural gas is a key input in fertilizer production.
Officials said they are monitoring government measures introduced to mitigate the economic fallout from the conflict and are assessing their effectiveness.
“We highlighted the importance of closely monitoring fertilizer supply chains, energy and economic developments, and policy responses,” the statement said.
The organizations added that they would continue sharing information and coordinating support as the conflict evolves.
“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.”
This version leads with the most market-moving element, the Strait of Hormuz disruption and oil inventory drawdowns, while placing the broader economic and food security implications in context, consistent with Bloomberg’s focus on markets and economic impact.
