Middle East war straining energy supplies

The US-Israel war in the Middle East is straining global energy supplies and hitting vulnerable economies hardest.

The heads of the International Energy Agency, International Monetary Fund, ​World Bank and World Trade Organization warned ‌on Friday saying that the war on Iran has disrupted trade, rattled ​financial markets and raised concerns over global energy ⁠supplies, particularly through the Strait of Hormuz, a ​key route for oil and gas shipments. 

The global institutions ​said that the world economy remained resilient, but the conflict was disproportionately affecting poorer countries through higher fuel and fertilizer prices, ​increased uncertainty, and risks to jobs, reports Reuters.

The heads of ​the groups met on Thursday to discuss how they should ‌respond ⁠to the economic impact of the war, they said in a joint statement.

US President Donald Trump has said he would decide Friday over a potential deal ​with Iran to ​extend their ceasefire ⁠that would need to include opening the waterway and dismantling Tehran’s capacity to ​make a nuclear weapon.

“If shipping flows do ​not ⁠return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the ⁠Northern ​Hemisphere would present increasing risks ​for fuel security, market conditions, and broader economic resilience,” the institutions said.