In a joint statement, Kristalina Georgieva, Ajay Banga and Cindy McCain stressed that the conflict “has already triggered one of the largest disruptions in global energy markets in modern history”.
“Sharp increases in the prices of oil, gas and fertilisers, combined with transport bottlenecks, will inevitably lead to rising food prices and greater food insecurity,” the statement said, referring to the partial closure of the Strait of Hormuz, through which a significant share of the world’s hydrocarbons is transported.
Although Washington and Tehran agreed on a two-week ceasefire, which includes the reopening of the maritime route and has provided some relief to oil prices, crude costs remain around 50% higher than before 28 February, when the first attacks by the US and Israel were launched.
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“The burden will fall most heavily on the world’s most vulnerable populations, particularly in low-income economies that depend on imports,” the joint statement added.
“Rising fuel prices and potential sharp increases in food prices are especially concerning in countries where fiscal space is limited and debt levels are already high,” the organisations warned.
The IMF, World Bank and WFP also pledged to coordinate efforts to “safeguard lives and livelihoods, while laying the foundations for a resilient recovery that supports stability, growth and employment.”
