WASHINGTON, April 15 ā The International Monetary Fund and the World Bank warned that escalating conflict in the Middle East is driving up energy and fertilizer costs, threatening global food security and increasing pressure on vulnerable economies.
Rising oil and gas prices linked to the crisis are feeding into higher agricultural production and transport costs, the institutions said, adding that disruptions to key trade routes are compounding supply chain strains.
āHigher energy prices are translating quickly into food price pressures,ā officials familiar with the assessments said, noting that fertilizer costsāclosely tied to natural gasāhave surged in recent weeks.
The warnings come as many countries continue to grapple with inflation and debt burdens, limiting their ability to cushion consumers from rising food costs.
Import-dependent economies, particularly in Africa and parts of Asia, are seen as most at risk. Currency weakness and limited fiscal space could worsen the impact of higher global prices, raising the likelihood of increased hunger and social strain.
The World Bank said countries reliant on food imports face mounting balance-of-payments pressures as shipping and commodity costs rise. The International Monetary Fund added that a prolonged conflict could further slow global growth and heighten financial stability risks.
Analysts say the conflict is affecting multiple pillars of the global food system simultaneously, including fuel supplies, fertilizer availability and trade logistics.
While some energy-exporting countries may benefit from higher crude prices, economists caution that the broader effect is likely to be negative, particularly for low-income nations.
Both institutions called for coordinated international support to help at-risk countries manage rising costs and maintain food supply stability.
Without intervention, they warned, the conflict could exacerbate existing vulnerabilities and push millions more into food insecurity.
