The leaders of the International Energy Agency, the International Monetary Fund, and the World Bank Group have announced the creation of a collaborative group aimed at enhancing their collective response to the energy and economic repercussions of the ongoing conflict in the Middle East. They released a unified statement detailing their intentions.

The conflict in the Middle East has led to significant disruptions, impacting both lives and livelihoods in the region. It has also resulted in one of the most severe energy supply shortages recorded globally. The effects are widespread and uneven, hitting energy-importing nations, particularly those with lower income levels, the hardest. This situation has already manifested in soaring prices for oil, gas, and fertilizers, raising alarm over potential increases in food costs. Additionally, global supply chains—encompassing commodities such as helium, phosphate, and aluminum—along with the tourism sector, which is suffering from flight cancellations at major Gulf airports, have also been disrupted. The ensuing market instability, the depreciation of currencies in emerging markets, and rising inflation expectations suggest a likelihood of tighter monetary policies and slower economic growth.

In these uncertain times, it is crucial for our organizations to collaborate in monitoring ongoing developments, synchronizing analyses, and coordinating support for policymakers as they navigate this crisis. This collaboration is particularly vital for nations that are most vulnerable to the repercussions of the conflict and those facing restricted policy options coupled with elevated debt levels. To facilitate a unified response, we have collectively agreed to establish a group that will:

• Evaluate the extent of the impacts across various countries and regions through collaborative data sharing that encompasses energy markets, pricing, trade flows, fiscal and balance of payments challenges, inflation patterns, export limitations on essential commodities, and disruptions in supply chains.
• Organize a response mechanism that may involve targeted policy recommendations, evaluation of potential financing requirements along with the provision of financial assistance (including concessional financing), and the deployment of risk mitigation strategies as necessary.
• Engage relevant stakeholders, including other multilateral, regional, and bilateral partners, to provide coordinated and effective support to nations in need.

The group will collaborate with and leverage the expertise of other international organizations as required.

We are dedicated to working collectively to uphold global economic and financial stability, bolster energy security, and assist affected nations and populations in their journey toward sustainable recovery, economic growth, and job creation through necessary reforms.