IEA, IMF, World Bank to form coordination group as West Asia war jolts global energy, economy

The International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group on Thursday announced the formation of a joint coordination group to strengthen their response to the widening energy and economic fallout from the ongoing war in West Asia.

In a joint statement, the three institutions said the conflict has caused “major disruptions” to lives and livelihoods across the region, while triggering one of the largest supply shortages in the history of global energy markets.

The impact, they warned, is “substantial, global, and highly asymmetric,” disproportionately affecting energy-importing nations—particularly low-income countries.

The shock is already being transmitted through surging prices of oil, gas and fertilisers, with growing concerns over food inflation as input costs rise.
The disruption has also rippled across global supply chains, affecting commodities such as helium, phosphate and aluminium.

Tourism flows have been hit as well, with flight disruptions at key Gulf hubs compounding the economic strain.

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The statement flagged heightened market volatility, weakening currencies in emerging economies, and rising concerns over inflation expectations. These trends, the institutions cautioned, could prompt tighter monetary policies globally and weigh on economic growth.

The proposed coordination group will assess the severity of the crisis across countries and regions through shared data and analysis. It will also work on aligning response strategies, including targeted policy advice, evaluation of financing needs, and provision of financial support where required.

Additionally, the group aims to mobilise broader international support by engaging multilateral, regional and bilateral partners to deliver coordinated assistance to countries most affected by the crisis.