Global economic chiefs urge Hormuz reopening

The Heads of the International Energy Agency (IEA), International Monetary Fund (IMF), World Bank Group (WBG), and World Trade Organisation (WTO) met on July 7 as part of the high-level coordination group established in April to maximize their institutions’ response to the energy, trade, and economic impact of the war in the Middle East. Following the meeting, they issued the statement below:

“We met to take stock of energy, trade, and economic developments, to discuss the situation in vulnerable countries, and to further coordinate our support to those in need.

“The global economy has been broadly resilient to the shock from the war in the Middle East, even as some economies have experienced a slowdown in growth and an uptick in inflation. Overall the impact has been highly uneven, affecting energy supplies, food security, various commodities, and economic activity across many countries and regions and creating deeper concerns about growth and price stability.

“We encourage further progress toward a resolution to the conflict and the reopening of the Strait of Hormuz. Fuel and fertiliser prices dropped since we last met in June. However, uncertainty remains high, and the impacts of the war could linger. Energy markets and transit of goods are still facing strains. Governments and the international community should remain vigilant and continue to work together to uphold the principle of freedom of navigation in the Strait and globally, support economic recovery, protect jobs and livelihoods, strengthen energy and food security, including through improving port infrastructure and trade facilitation, and increase broader resilience to future shocks.

“We will continue to work with each other and with our members to closely monitor energy, trade, and economic developments. We will strengthen our readiness to act further if needed and will continue adapting our support to countries as the situation evolves. That includes helping them build greater energy, food, trade, and economic resilience.”