IMF warns Iran war fuelling global food crisis for millions

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has warned that the ongoing Iran-related war is significantly worsening global food insecurity, as disruptions to energy markets, transport routes and supply chains push up prices and strain vulnerable economies.

Georgieva said during the IMF–World Bank Spring Meetings in Washington, D.C. that the crisis is already having far-reaching humanitarian and economic consequences, particularly for countries heavily reliant on food and energy imports, Caliber.Az reports via foreign media.

"Sharp increases in oil, gas, and fertilizer prices, together with transport bottlenecks, will inevitably lead to rising food prices and food insecurity," said a joint statement issued by the IMF, the World Bank and the World Food Programme, reflecting the growing concern among global institutions over the spillover effects of the conflict.

Georgieva said the fallout from the war could require between $20 billion and $50 billion in financial assistance from the IMF as countries struggle to cope with balance-of-payments pressures driven by rising import costs and reduced economic activity. She noted that the impact on food security could affect at least 45 million people worldwide, as supply disruptions and higher fertiliser prices feed through into agricultural production and food availability.

The war, involving Iran and the United States alongside wider regional tensions, has contributed to volatility in global energy markets, including disruptions to key shipping routes. These developments have increased transport costs and complicated the movement of essential goods, further tightening global food supply chains.

Georgieva cautioned that even in a best-case scenario, the global economy would not return to pre-war conditions. “Even in a best case, there will be no neat and clean return to the status quo ante,” she said, highlighting the likelihood of prolonged “scarring effects” on growth, trade and food systems.

By Aghakazim Guliyev