IMF and World Bank Annual Meeting held in Bangkok, war in the Middle East and high debt became the focus

Financial officials from around the world will gather in Bangkok, Thailand, this week. However, the meeting is faced with the continued expansion of the war in the Middle East, the worst energy supply shortage in history, and high interest rates, which have made the already weak global economy even worse.

Reuters reported that the war against Iran led by the United States and Israel has now entered its eighth month. The inflation and people's livelihood difficulties caused by the war will become the core issue and the focus of private discussions at the annual meetings of the International Monetary Fund (IMF) and the World Bank. This is the first time in three years that the annual conference has been held outside Washington.

What is particularly striking is that U.S. Treasury Secretary Scott Bessent will be absent from the meeting. A U.S. official said he had sent two senior officials to attend on his behalf because he was dealing with some "domestic matters."

Bessant's decision to skip the high-profile meeting, as well as the Group of 20 (G20) meeting, which the United States holds the rotating presidency this year, may upset other officials. At this time, tensions are rising over issues such as the Iran war, Ukraine's war against Russian aggression, and the United States' preparations to impose sanctions on the International Criminal Court (ICC).

World Bank President Ajay Banga told Reuters that global economic growth was more resilient than originally feared when Iran blocked the Strait of Hormuz, cutting off about 20% of global oil supplies, but now pressures are rising again.

Soaring diesel prices, rising fertilizer prices, and the possible imminent "super" El Niño phenomenon are all hitting us at the same time. Experts point out that this climate phenomenon may cause 450,000 deaths from heat-related causes.

The Group of Seven major industrial nations (G7), under pressure from U.S. President Trump, agreed to release 100 million barrels of diesel and crude oil from emergency reserves. Trump is eager to keep gas prices down before the November election to prevent his Republican Party from losing control of Congress.

Trump announced an agreement with Russia yesterday to provide more diesel to the global market and temporarily waive U.S. sanctions against Russia. The sanctions were intended to cut off Moscow's revenue from financing its war in Ukraine. This measure was immediately criticized by Ukrainian President Volodymyr Zelenskyy.