Overview
- The heads of the IEA, IMF, World Bank and WTO issued a joint statement warning that the U.S.-Israel war on Iran is disrupting trade and energy flows and damaging economic resilience.
- The institutions said interruptions to shipments through the Strait of Hormuz could rapidly deplete global oil stocks before peak summer demand, creating fuel-security risks for markets.
- They warned poorer countries are being hit hardest through higher fuel and fertilizer prices, greater uncertainty and mounting risks to jobs and growth.
- U.S. officials and some media reported a possible ceasefire extension awaiting President Donald Trump’s sign-off, while Tehran and state-linked outlets say no final agreement exists.
- Policymakers and markets now face two near-term tests: whether shipping can return to normal to protect inventories and whether any verified diplomatic deal will ease price and trade pressures on vulnerable economies.