IMF warns of Middle East conflict economic fallout.

IMF warns of Middle East conflict economic fallout. Managing Director Kristalina Georgieva cautioned that prolonged hostilities risk hitting market sentiment, growth, and inflation globally. Oil surged toward $120 a barrel as shipping through the Strait of Hormuz dropped 90 percent, disrupting roughly a fifth of global oil supply and LNG trade. For Japan alone, the strait accounts for nearly 60 percent of oil imports and 11 percent of LNG supplies. The IMF estimates a sustained 10 percent energy price increase would add 40 basis points to global inflation. Georgieva urged policymakers to prepare for unexpected shocks and new challenges, emphasizing nations must strengthen domestic policies to handle future disruptions in this uncertain global environment.