Get ready, the crisis will drag on for a long time, inflation will break your back, there will be chaos from fields to plates!

Middle East Crisis: Ever since America and Israel attacked Iran in February, there has been turmoil in the rest of the world. Although the war is being fought in Western Asia, no one is untouched by its flame. People are waiting for a solution to be found immediately and things to come back on track. However, there is no scope for relief right now. We are not saying this, but giants like IMF, World Bank and International Energy Agency have warned about this.

The International Monetary Fund (IMF) and the World Bank issued a joint statement in Washington today, April 14, warning that fuel and fertilizer prices may remain high for a long time due to the ongoing war in the Middle East. This is being considered as the third major blow to the global economy. Before this, the global economy had already faced two major shocks in the form of Corona epidemic and Russia-Ukraine war.

These issues were discussed during the Springs Meetings of IMF and World Bank. The Springs Meetings of IMF and World Bank are held every year in April in Washington because the headquarters of both are here. In this, finance ministers and governors of central banks from around the world gather every year to discuss economic challenges. This time there were discussions on the war between Iran and America and the global energy crisis arising from it.

war all around

In a joint statement here, the three institutions said that the war has resulted in forced displacement of people, an impact on jobs and a decline in tourism. It may take time to heal. “As noted earlier this month, the impact of the war is large, global and highly uneven, disproportionately affecting energy importing countries, particularly low-income countries,” the statement said.

The statement noted that due to this shock, prices of oil, gas and fertilizers have increased, which has also increased concerns about food security and loss of jobs. In the past, some oil and gas producers have also suffered huge losses in export revenues.

The effect of war will last for many years

The ongoing tension in the Middle East is causing disruptions in shipping on the Strait of Hormuz. IMF chief Kristalina Georgieva warned that the impact of this disruption in energy supply will be felt for the next several years. Due to this war, there has been a huge increase in the prices of fertilizers. The price of urea has increased by about 46 percent in March 2026. Due to this, food security is looming around the world.

The threat to emerging economies is even greater

In view of the war, the inflation estimate for the emerging economies of the world has been increased from the earlier 3 percent to 4.9 percent. In the worst case it can go up to 6.7 percent. The World Bank has also reduced the growth rate estimate for developing economies from 4 percent to 3.65 percent. Just before the release of IEA’s Monthly Oil Market Report and IMF’s World Economic Outlook, the heads of the three institutions shared their latest assessments.

“We also discussed the situation in the countries most affected by this shock, as well as the responses by our institutions. Our teams are working closely together – including at the country level – to leverage our respective expertise to assist countries with tailored policy advice and, in the case of the IMF and the World Bank, to provide financial assistance where needed,” the statement said.

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The burden of inflation on the plate! Food inflation increased to 3.87% in March, Iran war spoiled the budget