IMF Members Say Iran Conflict Poses Risk to Global Economy

The conflict in the Middle East is a major shock that poses a “serious threat to the global economy” and will hit the poorest countries the hardest, according to a statement by the Chair of the International Monetary and Financial Committee.

“The global economy has been tested by repeated shocks over the past few years from wars and conflicts, including the new one in the Middle East,” said the Friday statement from the IMFC Chair Mohammed Aljadaan, finance minister of Saudi Arabia. “If prolonged, it could keep fuel and fertilizer prices elevated for an extended period, disrupt the supply of key inputs, and amplify risks to energy and food security, global growth, inflation, and external sector accounts.”