The International Monetary Fund (IMF) has raised concerns over the escalating conflict in the Middle East, cautioning that the war could have far-reaching consequences for the global economy.
In a statement released on Tuesday, the IMF said it is closely monitoring the crisis, which has already caused surges in energy prices, disrupted trade, and fueled volatility in financial markets. The fund emphasized that the impact will largely depend on the duration and intensity of the conflict, noting that a comprehensive assessment will be included in its April World Economic Outlook.
The warning coincides with the fourth day of US and Israeli strikes against Iran, with explosions and smoke reported in Tehran and other major cities. The Israeli government described its operations as pre-emptive, while US President Donald Trump confirmed that major combat operations were underway.
The crisis has disrupted global trade and energy flows. Airlines have suspended flights, shipping routes have been interrupted, and some energy companies have temporarily halted operations, affecting fuel supplies to key markets. Super tanker costs in the region have surged, and the strategic Strait of Hormuz—which carries roughly 20 percent of the world’s oil—has become a focal point of tension after reports that Iran targeted vessels in transit.
IMF noted that the situation adds to an already uncertain global economic environment, stating that “it is too early to assess the full impact on the global economy and the region.” Analysts warn that continued escalation could drive further oil price spikes and financial market instability, impacting economies worldwide, including Nigeria.
In response, Nigerian oil marketers under the Petroleum Products Retail Outlets Owners Association called for strengthened domestic refineries, consistent crude supply, and enabling policies to protect the local market from global shocks.
The IMF’s April report is expected to provide a detailed forecast of the conflict’s economic consequences, highlighting potential risks to energy, trade, and financial stability globally.
