Leaders from four major international organizations issued a warning Friday that ongoing warfare in the Middle East is placing significant pressure on worldwide energy markets and causing the greatest harm to developing nations.
The conflict between the U.S.-Israel alliance and Iran has caused disruptions to international commerce, created volatility in financial markets, and sparked worries about global energy security, especially regarding shipments through the Strait of Hormuz, a crucial passage for petroleum and natural gas transport.
While the worldwide economy has shown strength, the fighting is having an outsized impact on less wealthy nations through rising costs for fuel and fertilizer, greater economic uncertainty, and employment risks, according to the international organizations.
Leaders from these groups convened Thursday to discuss their response to the economic consequences of the conflict, according to their joint announcement.
U.S. President Donald Trump indicated he would make a decision Friday regarding a possible agreement with Iran to extend their current ceasefire, which would require reopening the shipping route and eliminating Tehran’s nuclear weapons development capabilities.
The organizations stated: “If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience.”
