Global Fuel, Fertiliser Prices To Stay High Amid West Asia Conflict, Warn Multilateral Bodies

New Delhi, Apr 15 (KNN) Global fuel and fertiliser prices may remain elevated for a prolonged period as uncertainty persists due to the ongoing West Asia conflict, according to a joint assessment by the International Monetary Fund, World Bank Group and the International Energy Agency.
 
Coordination Efforts to Address Crisis
 
The heads of the three institutions met in Washington as part of a coordination group set up earlier this month to jointly respond to the energy and economic disruptions caused by the conflict, reported PTI.
 
In a joint statement, they highlighted that the impact of the war is ‘substantial, global, and highly asymmetric,’ with energy-importing nations, particularly low-income countries, bearing the brunt of the shock.
 
Commodity Prices Surge, Food Security at Risk
 
The institutions noted that the conflict has pushed up oil, gas and fertiliser prices, raising concerns over food security, job losses and broader economic stability. Supply disruptions and infrastructure damage are expected to delay the normalisation of global commodity markets.
 
“Even after a resumption of regular shipping flows through the Strait of Hormuz, it will take time for global supplies of key commodities to return to pre-conflict levels,” the statement said, adding that prices are likely to remain high due to these constraints.
 
Trade and Supply Chains Affected
 
The disruption has also affected global trade and logistics, with shortages of critical inputs expected to impact multiple sectors including energy, agriculture and manufacturing.
 
Beyond economic effects, the institutions flagged significant humanitarian and social consequences. The conflict has led to displacement of people, loss of livelihoods and a decline in travel and tourism, with recovery in these areas expected to take time.
 
Interestingly, while energy-importing countries face rising costs, some oil and gas-producing nations in the region have also experienced a sharp fall in export revenues due to disrupted shipping and infrastructure damage.
 
Institutions Step Up Support Measures
 
The three organisations said they are closely coordinating their response, including providing policy advice and financial assistance to the most affected countries. They emphasised continued monitoring of global energy markets and economic conditions, with a focus on supporting a stable and resilient recovery.
 
The assessment comes ahead of major global outlook publications such as the World Economic Outlook and the Oil Market Report, which are expected to further detail the evolving impact of the conflict on the global economy.
 
(KNN Bureau)