Paris, France – Web Desk: International Monetary Fund (IMF) Managing Director Kristalina Georgieva has cautioned that the escalating conflict in the Middle East—now in its second week—is severely testing the resilience of the global economy, with lasting challenges likely to persist even after hostilities end.
Speaking at an event in Tokyo on March 9, 2026, Georgieva highlighted significant damage to key oil and gas facilities during US-Israeli strikes on Iran, leading to major disruptions in global energy supplies. She pointed to a nearly 90% decline in maritime traffic through the Strait of Hormuz—a critical chokepoint for approximately 60% of global seaborne oil trade and 11% of liquefied natural gas (LNG) shipments.
Oil prices have surged by as much as 50% amid the tensions, compounding inflationary pressures and raising borrowing costs worldwide. Georgieva warned that a prolonged conflict would create fresh difficulties for policymakers, including central banks and governments already navigating post-pandemic recovery, high debt levels, and geopolitical fragmentation.
The IMF chief’s remarks underscore growing international alarm over the war’s spillover effects, which have driven Brent crude above $100 per barrel, halted routine shipping, triggered production cuts by Gulf producers, and prompted military protection measures for tankers.
In a related development, the IMF has reportedly requested Pakistan to prepare an emergency economic stabilization plan in response to the regional crisis, as the country faces acute risks from imported inflation, higher fuel costs, and potential balance-of-payments pressures.
Georgieva emphasized the need for swift de-escalation and diplomatic efforts to restore stability and prevent deeper economic scarring.
