Global Institutions Form Coordination Group to Address Economic Fallout of Middle East Conflict

A global coordination group has been set up by the International Monetary Fund, International Energy Agency and World Bank Group to respond to the economic and energy fallout from the conflict in the Middle East. The move comes as the war enters its second month, raising concerns over its impact on global markets and economic stability.

In a joint statement, the three institutions said the conflict has spread across the region, disrupting energy supplies and increasing uncertainty for economies worldwide. The situation has heightened risks to global growth, particularly as markets remain sensitive to supply shocks linked to oil and gas flows.

The initiative reflects growing concern about the wider consequences of the US-Israel offensive against Iran, which has affected key energy routes and contributed to volatility in global prices. Analysts warn that prolonged disruption could place additional pressure on both developed and emerging economies, especially those reliant on energy imports.

“At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis,” the organisations said in their statement.

The coordination group will focus on assessing the economic and energy impact of the conflict across countries, while also developing a joint response strategy. This includes providing technical expertise, policy guidance, and financial support to governments dealing with rising energy costs and market instability.

Officials said the group would also work to ensure that vulnerable economies receive targeted assistance, particularly those facing balance-of-payments pressures or struggling with inflation linked to higher fuel prices. The institutions are expected to share data and analysis to help governments make informed decisions in a rapidly changing environment.

The International Energy Agency is expected to play a key role in monitoring global energy supply and demand, while the International Monetary Fund and World Bank Group will focus on financial stability and economic recovery measures. Together, they aim to strengthen coordination at a time when the global economy faces overlapping challenges.

“We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms,” the statement said.

The formation of the group signals a coordinated international effort to manage the fallout from the conflict and prevent wider economic disruption. With uncertainty continuing to weigh on markets, policymakers are expected to rely on the group’s analysis and recommendations to guide responses in the weeks ahead.