As the Middle East became embroiled in conflict following U.S. and Israeli airstrikes on Iran, the International Monetary Fund (IMF) warned of the repercussions for the global economy.

According to AFP, IMF Managing Director Kristalina Georgieva said in a speech at the ‘Asia in 2025’ conference held in Bangkok, Thailand, on the 5th (local time) that “if this conflict is prolonged, it is clear that it could affect global energy prices, market sentiment, growth, and inflation,” and that “it will place a new burden on policymakers worldwide.”

She said, “In most Asian countries, energy security is in a precarious state,” noting that markets had “whipsawed like a roller coaster” in recent days. She added, “It would be best for the world if this catastrophe ended as quickly as possible.”

The airstrikes by the United States and Israel on Iran, which began on the 28th of last month, have continued for six days. As Iran, in a retaliatory move, closed the Strait of Hormuz, a major global oil shipping route, international crude prices surged. Brent crude and West Texas Intermediate (WTI) at one point rose more than 12% after the strikes began.

On the previous day at the U.S. ICE Futures Exchange, Brent crude futures settled at $81.4 per barrel, unchanged from the prior day. WTI closed at $74.66, up 0.1% from the day before.

The IMF plans to reflect the situation related to the Iran airstrikes in the ‘World Economic Outlook’ to be released next month. In January, the IMF projected global economic growth for 2026 at 3.3%.

Georgieva said, “We live in a world where shocks are more frequent and harder to predict,” adding that “uncertainty has now become the ‘new normal’.” She also forecast that “the global economy could enter a prolonged period of instability.”