Washington: Three global institutions have announced coordinated measures to stabilise energy markets and support vulnerable countries amid the Middle East conflict. The measures include policy advice and financial support at global and country levels to address the impact of the crisis, which disproportionately affects energy importers and low-income countries.
According to Ghana News Agency, the International Energy Agency (IEA), International Monetary Fund (IMF) and World Bank Group (WBG) issued a joint statement at the end of their meeting in Washington. They noted that the shock had led to higher oil, gas and fertiliser prices, raising concerns about food security and job losses, while some oil and gas producers in the Middle East were also experiencing sharp declines in export revenue.
The institutions stated that the situation remains very uncertain, with shipping through the Strait of Hormuz yet to normalise. Even after a resumption of regular shipping flows through the Strait, it will take time for global supplies of key commodities to move back towards their pre-conflict levels. They emphasized their teams are working closely, including at country level, to leverage their respective expertise and provide tailored policy advice and, in the case of the IMF and World Bank, financial support where needed.
Encouragement towards energy diversification was also mentioned as a long-term solution, promoting investments in renewable energy and regional interconnections to reduce reliance on volatile fossil fuel markets. Food security was identified as a key concern, with the World Bank preparing targeted financing for agricultural resilience, while the IMF was advising on fiscal measures such as subsidies for vulnerable households and support for fertiliser imports.
In terms of job protection, the institutions are coordinating with national authorities to design employment programmes to cushion displaced workers and support recovery in tourism and services. Their collaboration will focus on active engagement with governments to implement solutions aimed at improving food security, energy stability, and job creation.
The institutions also highlighted the need for continuous monitoring and flexibility, noting that responses would be adjusted as conditions evolve to ensure effectiveness. They committed to closely monitoring and assessing the impact of the war on energy markets, the global economy, and individual countries, coordinating responses and support to member countries, and drawing on other international organizations' expertise to lay the foundations for a resilient recovery.