IMF, IEA and World Bank warn of summer fuel shortages if Hormuz remains shut

The IMF, International Energy Agency and World Bank have warned of possible summer fuel shortages if maritime traffic through the Strait of Hormuz does not resume normal flow quickly. In a joint statement, the three institutions said global oil inventories are being depleted at a record pace because of the significant loss of supplies passing through the strait.

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They said the continued rapid decline in global stockpiles would increase risks to fuel security, market stability and broader economic resilience if shipping flows are not restored before peak summer demand in the Northern Hemisphere. The statement did not give a timeline for any restoration of traffic.

The agencies also said the conflict in the Middle East has driven up energy and fertiliser prices, with the impact falling disproportionately on low-income countries. They noted that higher fertiliser prices are especially concerning as many countries enter the planting season.

The text says Iran has restricted shipping through the Strait of Hormuz, a vital waterway through which around one-fifth of global oil and liquefied natural gas supplies normally pass, in response to US-Israeli attacks launched in late February. It also says IMF Managing Director Kristalina Georgieva estimated that vulnerable economies would need between $20-50 billion in financial assistance due to the economic fallout of the conflict.

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