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From Adanna Nnamani, Abuja
The International Monetary Fund (IMF) has raised the alarm over the escalating conflict in the Middle East, warning that the war could have far-reaching consequences for the global economy.
In a statement published on Tuesday, the IMF said it was closely monitoring developments in the Middle East, noting that the crisis has already caused surges in energy prices, disruptions to trade, and volatility in financial markets.
The fund stressed that the impact of the conflict will largely depend on its duration and intensity, adding that a comprehensive assessment will be included in its April World Economic Outlook.
The warning comes as the United States and Israel entered the fourth day of strikes against Iran. Explosions and smoke were reported in Tehran and other major cities, with the Israeli government describing its operations as pre-emptive. US President Donald Trump confirmed that major combat operations were underway.
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The crisis has also triggered global trade and energy concerns. Several airlines have suspended flights, shipping routes have been disrupted, and some major energy companies have temporarily halted operations, affecting fuel supplies to key markets. Super tanker costs in the region have soared to all-time highs, while the strategic Strait of Hormuz, which carries roughly 20 percent of the world’s oil, has become a focal point of tension after Iran reportedly targeted vessels in transit.
IMF noted that the situation adds to an already uncertain global economic environment, stating that “it is too early to assess the full impact on the global economy and the region.”
Analysts warn that continued escalation could drive further oil price spikes and financial market instability, affecting economies worldwide, including Nigeria’s.
In response, Nigerian oil marketers under the Petroleum Products Retail Outlets Owners Association have called for strengthened domestic refineries, consistent crude supply, and enabling policies to cushion the local market from global shocks.
The IMF’s April report is expected to provide a detailed forecast of the economic consequences of the conflict, highlighting risks that could affect energy, trade, and financial stability globally.
