GCC Business News: The heads of the International Energy Agency (IEA), International Monetary Fund (IMF), and World Bank Group have announced the formation of a joint coordination group to enhance the global response to the economic and energy repercussions of the ongoing conflict in the Middle East.

In a joint statement, the organizations highlighted that the war has triggered one of the largest supply shortages in the history of the global energy market, causing widespread disruptions to lives, livelihoods, and international trade.

The crisis has disproportionately affected energy importers, particularly low-income countries, and is contributing to soaring prices for oil, gas, and fertilizers, while raising concerns about global food security.

The conflict has also disrupted global supply chains for key commodities such as helium, phosphates, and aluminum and affected the tourism sector due to flight disruptions at major Gulf hubs.

Market volatility, weakening currencies in emerging economies, and rising inflation expectations are further compounding the challenge, increasing the likelihood of tighter monetary policies and slower global growth.

The newly formed coordination group aims to provide a unified and efficient response to these complex challenges.

Its mandate includes assessing the severity of impacts across countries and regions through coordinated data on energy markets, trade flows, fiscal pressures, inflation trends, export restrictions, and supply chain disruptions.

The group will also coordinate response mechanisms, which may include targeted policy advice, assessments of financing needs, and the provision of financial support, including concessional or low-interest financing, alongside risk mitigation tools where appropriate. Additionally, the team will mobilize multilateral, regional, and bilateral stakeholders to deliver coordinated assistance to the countries most affected by the crisis.

“Our institutions must work together to safeguard global economic and financial stability, strengthen energy security, and support affected countries on their path to sustainable recovery, growth, and job creation,” the heads of the IEA, IMF, and World Bank said in their statement.