Global Finance Leaders Acknowledge Limited Ability to Counter Economic Damage From Middle East War Shocks

Global finance leaders at IMF-World Bank Spring Meetings acknowledged their limited ability to mitigate economic damage from increasingly frequent geopolitical shocks. The institutions pledged up to $150 billion in aid to developing nations hardest hit by energy price shocks. Leaders expressed frustration that relying on US leadership to resolve crises is no longer guaranteed, as optimism about Iran reopening the Strait of Hormuz faded amid new shipping attacks. The IMF warned global growth could fall to 2.5% if the Middle East war prolongs.