IMF decries rising energy costs, trade disruptions amid Middle East tensions

2026-03-03 17:42:31

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The International Monetary Fund has expressed concern over rising energy prices and disruptions to global trade caused by the crisis in the Middle East.

This was stated in a publication on the IMF website on Tuesday.

The global monetary body broke its silence as the United States–Israeli war against Iran entered its fourth day.

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What IMF is saying

The IMF said it is closely monitoring the situation but warned that the conflict would add to global economic uncertainties.

“We are closely monitoring developments in the Middle East. So far, we have observed disruptions to trade and economic activity, surges in energy prices, and volatility in financial markets.
“The situation remains highly fluid and adds to an already uncertain global economic environment. It is too early to assess the economic impact on the region and the global economy. That impact will depend on the extent and duration of the conflict,” the statement said.

The IMF added that it would provide a comprehensive assessment in its April World Economic Outlook.

More insights

The global economy faces profound risks from the tension in the Middle East.

Several airlines have suspended operations, and shipping routes are being disrupted as a result of the conflict.
With some major energy companies also halting operations, fuel supply to key markets is being affected.

The IMF’s April World Economic Outlook is expected to provide a comprehensive analysis of the situation.

What you should know

The escalation in the Middle East began on Saturday, February 28, 2026, when the US and Israel launched strikes on Iranian cities, triggering explosions and smoke in Tehran and other locations.

The Israeli government described the operation as pre-emptive, while US President Donald Trump confirmed that major combat operations had begun.
Global oil and gas shipping rates surged as tensions rose, with supertanker costs in the Middle East reaching all-time highs.
The strategic Strait of Hormuz, a key chokepoint carrying roughly 20% of global oil, became a focal point after Tehran targeted vessels transiting the passage.

The ongoing crisis has heightened concerns over global crude supply, with analysts warning of price spikes and supply disruptions that could directly affect petroleum market including Nigeria’s.

For this reason, oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria advised that Nigeria must consolidate and strengthen domestic refineries by ensuring consistent crude oil supply and creating enabling policies to minimise the impact of external geopolitical shocks.

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