April 10, 2026 | 02:11 pm
TEMPO.CO, Jakarta - The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, warned that the Middle East conflict has inflicted "considerable hardship" worldwide.
Referring to the ceasefire reached between US and Iran earlier this week, Georgieva mentioned, "A resilient world economy is being tested again by the now-paused war in the Middle East," as quoted from Antara.
At the center of the crisis is the disruption in global crude oil supply, which Georgieva said the war has cut daily oil distribution by 13 percent and liquefied natural gas (LNG) by 20 percent per day.
At the same time, she predicted that supply disruptions would lead to refinery closures and fuel and food crises. "A word of caution upfront: this being a classic negative supply shock, demand adjustment is unavoidable," said Georgieva.
Last Tuesday, US President Donald Trump announced a two-week ceasefire deal with Iran. This was responded to by Iranian Foreign Minister Abbas Araghchi, who stated that the Strait of Hormuz—which carries around 20 percent of global oil, petroleum products, and LNG supplies—will be reopened as part of the ceasefire agreement.
This ceasefire marks a positive development after the recent conflict in the Middle East, triggered by the joint US and Israeli attacks on Iran on February 28, 2026.
Tehran retaliated by attacking Israel and parts of US military assets in the region and restricted traffic in the Strait of Hormuz, leading to disruptions in supply and a global energy price spike.
Read: IMF Warns Millions at Risk of Food Insecurity as Result of the War
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