Overview
- World Bank President Ajay Banga said the institution will mobilize $80–100 billion over the next 15 months to support countries hit hardest by the Middle East war.
- Banga outlined an early tranche of $20–25 billion in the coming months with a further $30–40 billion possible after about six months through reallocated programs.
- The IMF lowered its global growth forecast to 3.1% and said it would have been 3.4% without the conflict, with a worst-case scenario near 2% if energy infrastructure suffers major new damage.
- The energy shock stems from attacks that have hobbled flows through the Strait of Hormuz, which carries about one-fifth of the world’s oil and liquefied gas, and the IEA and TotalEnergies warned of looming diesel and jet-fuel strains if disruptions persist.
- U.S. finance chief Scott Bessent criticized the IMF and World Bank outlooks, saying they likely overreacted with lower growth projections and higher inflation expectations.