Economic bodies warn of fuel security risks if Hormuz disruption continues

The heads of the World Bank, International Monetary Fund and International Energy Agency warned on Friday that continued disruption to oil shipping through the Strait of Hormuz could increase risks to fuel security, market stability and broader economic resilience as demand rises in the Northern Hemisphere summer, CBS reported.

In a joint statement following a meeting on Thursday to discuss the Iran war, the three organizations said global oil inventories were being drawn down at a “record pace” after three months of restricted shipping through the strategic waterway.

They added that while the global economy remained resilient, some countries were already facing higher fuel costs, while fertilizer prices had surged ahead of planting season.

The statement warned that if shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer demand could pose increasing risks to fuel security and market conditions.