The International Monetary Fund, World Bank and World Food Programme have warned that the ongoing conflict in the Middle East has severely disrupted global energy markets and could soon push up food prices worldwide, heightening the risk of food insecurity.
In a joint statement, the heads of the three organisations said the burden of rising food prices will fall most heavily on the world’s most vulnerable populations.
“The Middle East war is upending lives and livelihoods in the region and beyond. It has already triggered one of the largest disruptions to global energy markets in modern history.
“Sharp increases in oil, gas, and fertiliser prices, together with transport bottlenecks, will inevitably lead to rising food prices and food insecurity,” said the joint statement issued after a meeting of the heads of the three institutions on Wednesday.
They said the three organisations will continue to monitor the developments closely and coordinate the use of all available tools to support those impacted by the crisis.
“The burden will fall most heavily on the world’s most vulnerable populations, particularly in low-income, import-dependent economies. Spikes in fuel prices and potential sharp increases in food prices are especially concerning where fiscal space is constrained and debt burdens are already high, reducing governments’ ability to protect vulnerable households,” the statement said.
It said in accordance with their respective mandates, and building on existing response mechanisms, the three organisations will provide support to safeguard lives and livelihoods, and to lay foundations for a resilient recovery that delivers stability, growth and jobs.
The statement came a day after the United States and Iran agreed to a two-week ceasefire to the hostilities that began on February 28.
The United States and Israel had launched attacks on Iran after it refused to give up its stockpile of nuclear fuel.