Amman, March 30 (Petra) -- The International Monetary Fund warned on Monday that the war in the Middle East has caused severe disruptions to the economies of countries in the conflict zone and is casting a shadow over the outlook of many economies that had only recently begun recovering from previous crises.

In a blog published on the fund’s official website by its senior economists, the IMF said the war has triggered a global shock, though an uneven one, and has led to tighter financial conditions.

According to the fund, the closure of the Strait of Hormuz by Iran and damage to regional infrastructure have caused the largest disruption to the global oil market in history. Much will depend on the duration of the war, the extent of its spread, and the scale of damage to infrastructure and supply chains.

The IMF noted that low-income countries are particularly vulnerable to food insecurity due to rising food and fertilizer prices and may require additional external support at a time when many advanced economies are scaling back their international assistance.

"While the war may affect the global economy in different ways, all paths lead to higher prices and slower growth," the economists wrote.

Researchers pointed out that sustained increases in energy and food prices will exacerbate global inflation, noting that historically, persistent rises in oil prices tend to push up inflation and dampen growth. They added that the war could also fuel expectations of prolonged inflation, which may translate into higher wages and prices, making it harder to contain the shock without a sharp slowdown in growth.

//Petra// AF