IMF warns of economic strain due to Middle East conflict

During the annual spring meetings of the IMF and the World Bank in Washington, Managing Director Kristalina Georgieva warned that the ongoing conflict in the Middle East is driving up global oil prices. The disruption to infrastructure and the closure of the Strait of Hormuz are identified as primary factors impacting the global economy. Georgieva urged countries to prepare for difficult times and to reduce energy-intensive activities immediately, advising against non-targeted energy subsidies that could prolong the crisis. The IMF estimates that at least 12 countries, including some in sub-Saharan Africa, may require new lending programs. Total loan demand related to the conflict is projected to range between 20 and 40 billion dollars. Christian Mumssen, Director of the IMF's Strategy Department, noted that the organization is actively communicating with affected nations to assess their needs and available policy options. Beyond energy, the conflict has also caused significant disruptions to fertilizer supply chains.