IMF warns Mideast tensions are disrupting trade, energy markets

The International Monetary Fund (IMF) on Tuesday said it is closely monitoring developments in the Middle East, warning that escalating tensions are already disrupting trade flows, pushing up energy prices, and rattling financial markets.

In a statement released from Washington, the Fund said it has observed interruptions to economic activity alongside surges in oil and gas prices and heightened volatility across global markets.

The situation remains “highly fluid” and compounds an already fragile global economic environment marked by elevated uncertainty, the IMF said. However, it cautioned that it is too early to determine the scale of the economic fallout for the region or the broader global economy.

Any assessment will depend on how widespread and prolonged the conflict becomes, according to the Fund.

The IMF said it will provide a fuller analysis in its upcoming April edition of the World Economic Outlook, its closely watched report on global growth prospects and risks.

Attribution: Amwal Al Ghad English