Four global institutions have warned that the prolonged war in the Middle East is posing increasing risks to global energy security, food supplies, and economic growth as oil inventories continue to decline at a record pace.

In a joint statement last Friday, May 29, the International Energy Agency (IEA), the International Monetary Fund (IMF), the World Bank Group (WBG), and the World Trade Organization (WTO), said the conflict is generating “substantial and highly asymmetric impacts” on energy supplies, food security, and economic activity across countries and regions.

While the global economy has so far remained resilient, they said the effects of the conflict are disproportionately affecting vulnerable countries through higher fuel and fertilizer prices, increased uncertainty, and risks to jobs and livelihoods.

“Higher fertilizer prices are of particular concern as many countries enter the planting season,” they added.

The statement followed a May 28 meeting of a high-level coordination group established back in April to maximize the four institutions’ response to the energy, trade, and economic consequences of the conflict.

The institutions warned that global oil inventories are being depleted rapidly following major supply disruptions through the Strait of Hormuz, one of the world’s most important oil shipping routes.

“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz,” they said.

They warned that continued disruptions to shipping flows could further tighten global fuel markets ahead of peak summer demand in the Northern Hemisphere.

“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,” the statement said.

The four institutions said they reviewed the impact of the conflict on the most affected countries and regions and discussed ways to coordinate support for economies facing the greatest challenges.

They also explored options to strengthen assistance through multilateral and bilateral actions.

According to them, they would continue monitoring fertilizer supply chains, energy markets, economic developments, and policy responses as the conflict evolves.

In particular, they are tracking measures adopted by governments to address the economic impact of the war in an effort to promote transparency, share lessons, and identify emerging risks.

The institutions said they would remain in close contact and continue coordinating efforts to support affected countries and safeguard global economic stability.