IMF warns prolonged Middle East war could hurt regional economies

Conflict threatens economic recovery

The International Monetary Fund has warned that prolonged war in the Middle East and further disruptions to energy production, shipping routes and critical infrastructure pose major risks to regional economies.

Jihad Azour, the IMF's director for the Middle East and Central Asia, said the conflict was creating an uneven economic shock, with countries directly involved facing particularly severe consequences.

Energy supplies under pressure

Disruptions to oil production and shipping have intensified concerns about inflation, trade and economic stability. Countries dependent on imported energy are particularly vulnerable to rising prices.

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Recovery remains uncertain

The economic outlook depends heavily on how quickly security conditions stabilise and energy supplies recover. Prolonged hostilities could delay recovery and weaken investor confidence.

Policy challenges ahead

The IMF has emphasised the importance of maintaining price stability, protecting public finances and strengthening economic resilience. The warning highlights how geopolitical conflict can affect economies far beyond the battlefield.