Kristalina Georgieva told finance ministers in Washington that some countries are in panic as the Iran war deepens economic uncertainty.
The IMF managing director addressed the spring meetings on Thursday, saying the sooner the conflict ends the better for everybody.
Such gatherings are not typically used for geopolitical debate but a record-breaking April heatwave swept the US capital as officials discussed mounting damage from the war.
Those familiar with the mood over breakfast at a G20 representatives meeting described the atmosphere as sombre amid an open exchange of serious views.
Mohamed El-Erian called it a twilight-zone meeting with several shadows hanging over it including concern about the global economy as a whole.
He said some countries will be particularly hard hit though few people are talking about them and noted the US started a war of choice that will hit it less than elsewhere in relative terms.
Rachel Reeves began her day with an early-morning jog down the National Mall with counterparts from Spain Australia and New Zealand before posting an Instagram selfie with the message Friends that run together – operate together.
A day earlier she told a CNBC conference that friends are allowed to disagree on things as she criticised Trump’s Iran war as a mistake and a folly that had not made the world safer.
Speaking steps from the White House before a one-on-one meeting with Scott Bessent she said the fair message was needed because UK families and businesses feel the pain from higher energy prices triggered by the conflict.
Those close to Reeves insist her meeting remained cordial.
Brent crude surpassed $100 per barrel peaking at $118 before retreating following the ceasefire announcement while European gas prices rose by roughly 60% exceeding the spike after Russia’s invasion of Ukraine.
Commodity disruptions extend beyond oil and gas with one third of global fertilizer trade transiting through the strait and GCC countries accounting for over 40% of global sulfur exports and roughly 20% of ammonia and nitrogen fertilizer exports.
These price increases translate directly into higher food costs for some of the world’s most vulnerable populations in economies across MENA South Asia, and Africa.
The war has also affected services according to the IMF April 2026 Regional Economic Outlook for the Middle East and Central Asia released at an exceptionally difficult moment.
What specific economic corridors are disrupted by the Iran war?
The Strait of Hormuz disruption affects energy markets trade routes and business confidence as the center of a severe multifaceted shock to one of the world’s most important economic corridors.
How does the IMF describe the impact on living standards globally?
The IMF managing director said things had been looking up for living standards around the world before the Iran war caused a renewed surge in the cost of living hitting the most vulnerable hardest.