IMF: Middle East Conflict Causes Major Difficulties Worldwide

Washington (ANTARA) - The conflict in the Middle East has caused major difficulties worldwide, said the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva on Thursday (9/4).

“The resilient global economy is once again being tested by the war currently ravaging the Middle East. That conflict has caused major difficulties worldwide,” Georgieva stated, referring to the ceasefire reached between the US and Iran.

Among the main negative impacts caused by the conflict is a shock to global supplies, resulting in a 13 per cent reduction in oil distribution and 20 per cent in liquefied natural gas (LNG) per day, she said.

At the same time, supply disruptions are expected to lead to refinery closures, as well as fuel and food crises.

On Tuesday (7/4), US President Donald Trump announced a two-week ceasefire agreement with Iran.

Following the announcement, Iran’s Foreign Minister Abbas Araghchi stated that the Strait of Hormuz—which carries about 20 per cent of global oil, petroleum products, and LNG supplies—would be reopened as part of the ceasefire agreement.

This ceasefire represents a positive development following the latest conflict in the Middle East, which was triggered by a joint US and Israeli attack on Iran on 28 February.

In response, Iran then attacked Israeli territory and several US military facilities in the Middle East, and restricted traffic in the Strait of Hormuz—which triggered supply disruptions and a global surge in energy prices.

Source: Sputnik/RIA Novosti