IMF and World Bank warn of Hormuz Strait crisis impacts

The prolonged crisis in the Hormuz Strait threatens the economies of Northern Hemisphere nations, according to a joint statement by the International Monetary Fund (IMF), World Bank, International Energy Agency (IEA), and World Trade Organization (WTO).

“The Middle East conflict has caused significant and highly asymmetric impacts on energy supplies, food security, and economic activity across various countries and regions,” the statement said on Friday.

They noted vulnerable nations are most affected by rising fuel and fertiliser prices.

However, Northern Hemisphere countries are not immune to the impacts if the Hormuz Strait crisis persists.

“Global oil supplies are depleting at a record pace in response to the loss of major shipments through the Hormuz Strait,” the statement added.

The four agencies warned that if shipping does not return to normal, the rapid depletion of global oil reserves ahead of the Northern Hemisphere’s summer demand peak would heighten risks to fuel supply security, market conditions, and broader economic resilience.

They pledged to continue coordinating to monitor developments and align efforts in supporting the most affected countries while maintaining global economic stability.

On 28 February, the United States and Israel launched strikes against multiple targets in Iran, causing damage and civilian casualties.

Washington and Tehran announced a two-week ceasefire on 7 April.

Further talks in Islamabad concluded without clear outcomes, while the US began imposing blockades on Iranian ports.