Multilateral lenders including the Asian Development Bank (ADB), the International Monetary Fund (IMF), and the World Bank Group (WBG) are moving to provide immediate financing and coordinated support to countries reeling from the economic fallout of the Middle East war.

In a statement on Wednesday, April 1, the Manila-based ADB said it had approved the Rapid Resource Reprogramming and Deployment Option (3RDO), a financing mechanism that allows developing member countries (DMCs) to quickly repurpose existing funds for emergency response.

“The Middle East conflict is a stark reminder that our region’s exposure to geopolitical and economic shocks can escalate with sudden intensity. Speed is crucial to protect the economy and the most vulnerable during a crisis, and this new tool gives our developing members the means to act in days, not weeks or months, when their people need support the most,” ADB president Masato Kanda said.

The ADB’s 3RDO enables countries to redirect up to 10 percent of their undisbursed sovereign portfolio—or up to 25 percent for small island developing states—through pre-arranged contingent projects that can be activated within 24 hours of a government request. The mechanism is designed to address the most critical period immediately after a crisis, when governments must secure essential goods and stabilize public services.

ADB data showed that from 2020 to 2025, 1,227 disasters were recorded across its member economies, resulting in over 106,000 deaths and about $341 billion in economic losses, underscoring the need for faster-response financing tools.

Also, the heads of Paris-based International Energy Agency (IEA) as well as of both Washington-based IMF and WBG said they have agreed to form a coordination group to align their response to the war’s energy and economic impacts, according to a joint statement they issued also on April 1.

“The Middle East war has caused major disruptions to lives and livelihoods in the region and triggered one of the largest supply shortages in global energy market history. The impact is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries,” the three institutions said.

They noted that the shock is being transmitted through higher oil, gas, and fertilizer prices, while also raising concerns about food inflation and disrupting global supply chains and tourism flows.

“At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis. This is especially the case for countries that are most exposed to the downstream impacts from the war and those confronting more limited policy space and higher levels of debt,” they said.

The three institutions said the coordination group will assess cross-country impacts, including energy prices, trade flows, inflation trends, and balance of payments (BOP) pressures, while also mobilizing financial support and risk mitigation tools for the most vulnerable economies.