THE heads of major global economic institutions have warned that the ongoing conflict in the Middle East is straining global energy supplies and disproportionately affecting developing nations.

The warning came during a meeting in Washington, D.C., United States, according to a joint statement signed by the World Bank President, Ajay Banga; International Monetary Fund (IMF) Managing Director, Kristalina Georgieva; World Trade Organisaton (WTO) Director General, Dr. Ngozi Okonjo-Iweala; and the Executive Director of International Energy Agency (IEA) Fatih Birol.

They said the war was disrupting trade routes, rattling international financial markets, and heightening concerns over energy security, particularly due to the loss of supply through the Strait of Hormuz.

The global bodies noted that while the broader world economy had demonstrated resilience, the burden of the crisis was falling heavily on developing countries through rising fuel and fertiliser prices, increased market uncertainty, and mounting pressures on jobs. The surge in fertiliser costs is viewed as an immediate threat to upcoming planting seasons, which could worsen food insecurity and worsen inflation.

The institutions noted that shipping bottlenecks were forcing a rapid drawdown of strategic reserves. They emphasised that if maritime trade failed to stabilise swiftly, the combination of depleted stockpiles and high seasonal demand would create severe systemic vulnerabilities.

“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience,” the statement said.

The institutions indicated they are actively monitoring the supply chains for energy and agricultural inputs and were exploring options to expand coordinated financial and policy support to assist the hardest-hit member countries in managing the domestic fallout of the crisis.

“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz,” the statement added.

The joint intervention comes as the international community monitors diplomatic efforts to negotiate a potential ceasefire agreement that would include reopening critical maritime waterways and addressing regional security concerns.

The US-Iran war, which began on February 28, has disrupted global economy as efforts to stop the conflict through dialogue or diplomacy appears to have failed.