The Heads of the International Energy Agency,
International Monetary Fund, World Bank Group and World Trade Organization met on
May 28 as part of the high-level coordination group established in April to maximise
their institutions' response to the energy, trade, and economic impacts of the war
in the Middle East. Following the meeting, they issued the statement below:
Key Points
·
The heads of the International Energy Agency, International Monetary
Fund, World Bank Group, and World Trade Organization met on 28
May 2026 to review the energy, trade, and economic consequences of the ongoing
war in the Middle East.
·
The meeting was part of a high-level coordination group established
in April 2026 to strengthen international support and policy coordination.
Major Concerns Highlighted
Impact on Global Economy
·
The conflict is causing significant and uneven impacts on energy supplies,
food security, and economic activity across countries.
·
Vulnerable and developing economies are being disproportionately affected
through:
o Higher fuel prices
o Rising fertilizer costs
o Increased economic uncertainty
o Risks to jobs and livelihoods
Fertilizer Supply Risks
·
Rising fertilizer prices are a major concern as many countries enter the
agricultural planting season.
·
Higher input costs could threaten crop production and food security, particularly
in low-income countries.
Oil Supply and Energy Security
·
Global oil inventories are being depleted at a record pace due to
major supply disruptions through the Strait of Hormuz.
·
If shipping flows are not restored:
o Fuel security risks may increase.
o Oil market pressures could intensify.
o Global economic resilience may weaken, especially
during peak summer demand in the Northern Hemisphere.
Joint Actions Agreed
·
The four institutions will:
o Closely monitor energy, fertilizer, and
economic developments.
o Track government policy responses to the
conflict.
o Promote transparency and information-sharing.
o Identify emerging economic and trade risks.
o Coordinate multilateral and bilateral support
for affected countries.
Key Message
·
The organizations reaffirmed their commitment to maintaining global economic
stability, supporting the most affected countries, and ensuring coordinated
international action as the situation evolves.
Significance
·
Demonstrates unprecedented coordination among leading global institutions
responsible for energy security, financial stability, development financing, and
international trade.
·
Highlights growing concerns that prolonged disruption in the Middle East
could have far-reaching consequences for global energy markets, food systems, trade
flows, and economic growth.
[ABS News Service/30.05.2026]
"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. While the global economy
continues to show resilience, the effects of the conflict are disproportionately
affecting the most vulnerable countries through higher fuel and fertilizer prices,
increased uncertainty, and risks to jobs and livelihoods. Higher fertilizer prices
are of particular concern as many countries enter the planting season.
"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. 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.
"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. We also explored options to further enhance
collective support through multilateral and bilateral actions."
"We highlighted the importance
of closely monitoring fertilizer supply chains, energy and economic developments
as well as policy responses. In this regard, we are tracking and analyzing measures taken by governments to address the economic
impact of the conflict, with a view to promoting transparency, sharing lessons,
and identifying emerging risks.
"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 International Energy Agency,
the global energy authority, was founded in 1974 to help its member countries coordinate
collective responses to major oil supply disruptions. Its mission has expanded and
evolved since, and rests today on three main pillars: working to ensure global energy
security; expanding energy cooperation and dialogue around the world; and supporting
a secure, affordable and sustainable energy future. For more information, visit
https://www.iea.org/.
The IMF is a global organization
that works to support economic growth and prosperity for all of its 191 member countries.
It does so by supporting economic policies that promote financial stability and
monetary cooperation, which are essential to increase productivity, job creation,
and economic well-being. The IMF is governed by and accountable to its member countries.
For more information, visit https://www.imf.org
The World Bank Group works to
create a world free of poverty on a livable planet through
a combination of financing, knowledge, and expertise. It consists of the World Bank,
including the International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA); the International Finance Corporation
(IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International
Centre for Settlement of Investment Disputes (ICSID). For more information, please
visit www.worldbank.org, ida.worldbank.org/en/home, www.miga.org, www.ifc.org, and www.icsid.worldbank.org.
The World Trade Organization
is the international body responsible for governing global trade rules among its
166 members. It provides a forum for negotiating agreements, monitors trade policies,
and ensures transparency and predictability. The WTO also helps settle trade disputes
among its members and offers technical assistance to developing economies. Its objective
is to facilitate the smooth flow of trade and support economic growth, stability
and job creation. For more information, visit www.wto.org