The International Monetary Fund (IMF) has flagged the potential risks of the ongoing Middle East conflict on the global economy, warning that prolonged tensions could further slow economic growth and disrupt financial markets.
According to the IMF, uncertainty in financial markets and declining stock indices have already been observed, while rising interest rates could further drive global inflation.
The closure of the Strait of Hormuz threatens nearly 30% of oil shipments, putting additional pressure on oil- and gas-importing nations and raising concerns about higher energy prices worldwide.
The report also highlights that low-income countries may face worsening food crises, disrupted fertilizer supplies, and reduced agricultural output. Global trade is being affected as shipping costs rise, and some nations are already grappling with high debt levels and financial instability.
The IMF has advised member countries to adopt prudent policies, strengthen institutional capacity, and ensure financial support to mitigate the impact of these crises.
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