IMF warns of risk of new price shock due to war in Iran

A prolongation of the war in Iran is fraught with a new price shock for the world economy. The chief economist of the International Monetary Fund (IMF), Silvana Tenreiro, warned about this risk, as quoted by TASS.

The prolonged blockage of the Strait of Hormuz, coupled with continued interruptions in the production of raw materials in the Gulf countries, could lead to a new jump in world prices for energy resources, including oil, petroleum products and liquefied natural gas. “Longer disruptions in energy production and transportation in the Middle East region could lead to even greater price increases,” Tenreiro concluded.

Until recently, alternative delivery routes, increased production in other countries, the release of strategic reserves and the transition to renewable energy sources helped contain prices, the economist noted. However, every day the resources to mitigate the consequences of the war in the Middle East are becoming less and less. “Some of these mechanisms, particularly resource utilization and energy efficiency, are close to being exhausted,” Tenreiro concluded.