Introduction 1 - The IMF, World Bank and other institutions warn of an energy crisis
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May 29 (Reuters) - The heads of the International Energy Agency, the Monetary Fund, the World Bank and the World Trade Organization warned on Friday that the war in the Middle East is reducing global energy supplies and inflicting the most damage on fragile economies.
The US-Israeli war on Iran has disrupted trade, destabilized financial markets, and raised concerns about global energy supplies, particularly through the Strait of Hormuz, a vital waterway for oil and gas shipments.
International institutions have confirmed that the global economy remains resilient, but that conflict is disproportionately affecting poor countries through rising fuel and fertilizer prices and increasing uncertainty and risks that threaten jobs.
The heads of these organizations said in a joint statement that they met on Thursday to discuss how to respond to the economic repercussions of the war.
US President Donald Trump said he would make a decision today on a possible deal with Iran to extend the ceasefire, which must include opening the waterway and dismantling Tehran's ability to make a nuclear weapon.
The institutions said, "If shipping flows do not return to normal, the continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere will pose increasing risks to fuel security, market conditions, and broader economic resilience."
