IMF chief warns Middle East conflict testing global economic resilience
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IMF chief Kristalina Georgieva warns Middle East conflict is testing global economic resilience as Strait of Hormuz shipping drops 90% and oil prices surge by nearly 50%
PARIS (Web Desk) - International Monetary Fund Managing Director Kristalina Georgieva has warned that a new conflict in the Middle East is testing the strength of the global economy, cautioning that serious challenges will persist even after the war ends.
Speaking at an event in Tokyo, Kristalina Georgieva said key oil and gas facilities were damaged during the conflict, creating significant disruptions in global energy supply.
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She noted that shipping through the Strait of Hormuz has declined by nearly 90 percent, while about 60 percent of oil and 11 percent of liquefied natural gas imports pass through the strategic waterway.
The IMF chief further stated that if the conflict continues for a longer period, it will create new challenges for policymakers around the world.
She added that oil prices have already surged by as much as 50 percent amid the ongoing tensions.
