IMF Chief warns Mideast conflict could fuel global inflation as oil prices surge

10/03/2026 06:07 AST

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued a stark warning that the intensifying conflict involving the US, Israel and Iran presents significant upside risks to global inflation, as oil prices soared more than 30 per cent during Asian trading to reach their highest levels since 2022.

Speaking at a seminar organised by the Japanese Ministry of Finance, the IMF chief cautioned that a 10 percent increase in oil prices sustained throughout most of the year could elevate global inflation by approximately 40 basis points, adding further pressure to an already fragile world economy, reported Oman News Agency.

"We are witnessing a new test of the global economy's resilience arising from the unfolding conflict in the Middle East," Georgieva stated. "Policymakers must now contemplate and prepare for unforeseen scenarios that could rapidly materialise."

The warning coincided with dramatic movements in energy markets, as Brent crude futures surged more than 30 percent to peak at $119.50 per barrel, while West Texas Intermediate crude jumped to an intraday high of $119.43 per barrel.

The sharp appreciation marks the highest price levels seen since 2022 and reflects mounting market anxiety as the conflict enters its tenth consecutive day, threatening vital shipping lanes and regional production infrastructure.


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