IMF ready to help economies squeezed by Middle East oil shock

The International Monetary Fund said it stands ready to assist countries facing balance of payment concerns amid heightened uncertainty from the Middle East conflict.

IMF Managing Director Kristalina Georgieva said that she expects greater demand for the fund’s programs, especially since foreign aid is also on the decline. About 50 countries already rely on the fund to meet their balance of payment needs, she said in an interview with Bloomberg Television’s Haslinda Amin in Bangkok.

“We have some of our members that have significant balance of payment concerns already engaging with us,” Georgieva said on Friday. “We are ready to act. We recognise our responsibility in this world of uncertainty to be an anchor of stability.”

She expressed concern for some Pacific Island countries that are among the most vulnerable to a disruption in global oil supplies. Low-income countries and those with high levels of debt could also come under pressure, she said.

According to Georgieva, a 10% increase in energy prices lasting a year would raise inflation by 40 basis points and slow growth by up to 0.2 percent.

Central banks must brace for the impact of a possible oil shock, both on consumer prices that could spur inflation, but also on weaker currencies that could make the servicing of foreign debt more costly, she said.

She also urged countries to build fiscal capacity, strengthen institutions, and diversify energy supplies.

On Thursday, Georgieva warned of a “world of more frequent, more unexpected shocks,” with the war in the Middle East being the latest example. She called for policymakers to prepare their economies for potential challenges, which go beyond politics to include disruptive technology and trade conflicts.

The attack by the US and Israel has killed hundreds in Iran, which in turn has unleashed barrages of missiles and drones against its assailants, including US forces in the region. Shipping through the Strait of Hormuz has dwindled and oil prices have spiked, threatening to ignite inflation and choke off growth.

© 2026 Bloomberg