If Hormuz does not open quickly…an international warning of a severe fuel shortage during the summer
Several international organizations have warned, including The International Monetary Fund and the International Energy Agency raise the risk of a severe shortage of Fuel This Summer if maritime traffic no longer passes through the Hormuz returned to normal quickly.
The heads of the International Monetary Fund, the World Bank, the International Energy Agency and the World Trade Organization said in a joint statement on Friday: "Global oil inventories are shrinking at a record pace due to the huge loss of shipments passing through Strait of Hormuz"
They added: "If maritime traffic does not return to normal, a rapid and sustained decline in global inventories ahead of peak summer demand in the Northern Hemisphere will represent an increasing risk to energy security, market conditions and, more broadly, the resilience of the economy."
Rising energy and fertilizer prices
In the joint statement issued on Friday, officials reiterated that the sharp rise in the prices of energy products and fertilizers due to the war had a disproportionate impact on low-income countries, and explained that rising fertilizer prices are of particular concern as many countries enter the planting season.
During the spring meetings of the International Monetary Fund this year, IMF Director General Kristalina Georgieva said that the war had caused a reduction in global growth expectations.
She estimated that Fragile economies will need between $20 and $50 billion in financial aid due to the economic repercussions of the conflict.
Iran controls the Strait of Hormuz
Iran has restricted shipping traffic through the Strait of Hormuz, the vital waterway through which about a fifth of the world’s oil and liquefied natural gas usually passes, in response to the US-Israeli attack on it in late February.
In April, the heads of the International Monetary Fund, the World Bank and the International Energy Agency announced that they were forming a group to coordinate the agencies’ response to the crisis, Especially for fragile economies.
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