Fallout of Iran war: Top World Bank official ‘extremely concerned’

WASHINGTON: The World Bank is “extremely concerned” about the effect the war on Iran will have on inflation, jobs and food security, and is in talks with member states on how to address immediate needs in the crisis, a top official told AFP on Wednesday.

Managing Director Paschal Donohoe’s comments came as his organization announced a new partnership with the International Monetary Fund (IMF) and International Energy Agency (IEA) to coordinate aid responses to the war.

Donohoe flagged that countries in Asia and Africa were particularly vulnerable to the energy, price and supply-side shocks of the crisis.

“At the moment, we are consulting with many governments and countries in relation to what their needs will be, and I would anticipate within the next number of weeks that will become far clearer,” Donohoe said.

The United States and Israel launched strikes on Iran on February 28, igniting a war that has engulfed the Middle East, snarled key supply chains and sent energy prices soaring.

The World Bank offers development assistance and immediate budgetary support to member nations in the form of loans and technical assistance.