IMF, World Bank Move to Support Economies as Iran War Drives Food Security Concerns

The International Monetary Fund and the World Bank Group have pledged support for countries affected by the ongoing Middle East conflict, as rising oil, gas, and fertiliser prices heighten fears over food security and job losses. The commitment followed a high-level meeting with the International Energy Agency on Monday, held during the ongoing Spring Meetings in Washington DC. The talks form part of a coordination effort established earlier this month to address the economic and energy shocks triggered by the war.

The conflict began on February 28, when Iran launched reprisal attacks on United States military bases across the Middle East, with explosions reported in cities including Abu Dhabi, Manama, Doha, Kuwait City, and Riyadh. The strikes followed a joint missile operation by the United States and Israel targeting Iran. Now in its sixth week, the crisis has disrupted economic activity across the region, with global markets already feeling the impact.

Oil and gas prices have risen sharply since the outbreak of hostilities, driven by attacks on production facilities and restricted shipments through the Strait of Hormuz. Although Nigeria stands to benefit from higher crude prices as a major oil producer, the surge in transport costs has worsened living conditions for many citizens. Officials at the meeting noted that uncertainty remains high, with shipping routes yet to fully stabilise and global commodity supplies expected to take time to recover.

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The International Monetary Fund, the World Bank Group, and the International Energy Agency say prolonged supply disruptions could keep fuel and fertiliser prices elevated, affecting food production and key industries. They also warn that the conflict has displaced populations, reduced employment, and slowed travel and tourism. The institutions have pledged to provide policy guidance and financial support where necessary, while continuing to monitor global economic conditions as they prepare for a possible downgrade of growth forecasts.