Tuesday 31/March/2026 – 01:14 PM
The International Monetary Fund warned on Tuesday of the broad repercussions of the war in the Middle East on energy, trade, supply chains and financial markets, stressing that it represents a major burden on the global economy.
The Fund added that in light of the disruption of fertilizer shipments, about a third of which pass through the Strait of Hormuz, concerns are mounting about food prices.
The strength of the repercussions will depend on the duration of the conflict
The IMF warned of a high global inflation rate and weak growth, and said that the strength of the repercussions will depend on the duration, scope, and destructive power of the conflict, but it pointed out that one thing already seems clear, which is that economic risks are escalating.
The International Monetary Fund described the conflict as a global but asymmetric shock that mainly affects three channels: energy prices, trade, and financial conditions.
The IMF wrote: The war is also reshaping the supply chains for important non-energy inputs, and noted that changing the routes of tankers and containers increases shipping and insurance costs and lengthens delivery times, and the cancellation of flights in major centers in the Gulf affects global politics and leads to the complexity of trade.
