“Even in the best case, there will be no neat and clean return to the status quo ante,” said International Monetary Fund (IMF) Managing Director Kristalina Georgieva at a curtain-raiser event for the Spring Meetings of the IMF and World Bank.
As finance ministers and central bank governors gather in Washington, DC, they must contend with an unprecedented global energy shock caused by the Iran war and the closure of the Strait of Hormuz. As Georgieva emphasized, the impacts of the conflict will persist far into the future regardless of the outcome of the uneasy cease-fire and efforts to reopen the strait for global shipping.
We sent our experts to IMF and World Bank headquarters to gather insights into how the international financial institutions are navigating this uncertain moment for the global economy.
THE LATEST
A blockade of the global economy
Ajay Banga on responding to this economic crisis: ‘Focus on policies’ that ‘create jobs’
No IMF and World Bank spring meetings without a global crisis
In the Iran crisis, the IMF’s voice is urgently needed
Watch all our conversations with central bank governors, finance ministers, and experts
APRIL 12 | 8:30 PM ET
A blockade of the global economy
The world’s finance ministers and central bankers are arriving tonight in Washington with more anxiety than at any point since the COVID-19 pandemic. That’s remarkable, considering that just a year ago they were confronting US President Donald Trump’s “Liberation Day” tariffs and a massive reordering of the global trading system.
But the data is clear: the current energy crisis stemming from the Iran war and the continued closure of the Strait of Hormuz is causing a major hit to global growth. No matter what happens with the new blockade, the IMF is forecasting long-lasting scars in the global economy. That’s because shipping insurance will remain high, supply chains will shift, and countries are now pricing in more geopolitical shocks—IMF-speak for armed conflict—in the months ahead.
These meetings weren’t supposed to be about oil and war. They were meant to focus on the impact of artificial intelligence on jobs, the alarmingly high level of public debt in the United States and around the world, and the stress in the private credit market that is keeping Wall Street up at night. They were also set to pay tribute to Federal Reserve Chair Jay Powell, who will be attending his last IMF-World Bank meetings after eight years of what his colleagues firmly believe is steady leadership amid a wave of challenges.
Now, the agenda has been derailed—and the ministers are meeting under the shadow of a global energy shock that is already affecting hundreds of millions of people. Their actions won’t decide the outcome of the war or when the strait fully reopens, but they can help mitigate the fallout. The decisions the ministers make about which resources go where, and which countries get emergency money first, will all have a tangible impact on people’s lives in the weeks ahead. And if they rise to meet the moment with action, they will be doing exactly what they are supposed to do: acting as guardians of stability in the global economy.
APRIL 7 | 12:30 PM ET
Ajay Banga on responding to this economic crisis: ‘Focus on policies’ that ‘create jobs’
Expect “some degree of high inflation and some degree of lower growth” due to the Iran war, World Bank Group President Ajay Banga warned at the Atlantic Council on Tuesday.
Banga spoke before the announcement of a two-week cease-fire in the conflict, in a curtain-raiser conversation ahead of the International Monetary Fund (IMF)-World Bank Spring Meetings. He told the packed audience at Atlantic Council studios that inflation could notch 0.9 percent higher and growth could fall 0.4 percent lower as a result of the Iran war and its impact on shipping and energy.
Banga said that he expects a lot of conversation at the IMF-World Bank Spring meetings to focus on how the Bretton Woods institutions can “help countries mitigate the impact.” He pointed to the World Bank’s Crisis Response Windows, which he explained allow countries to access up to 10 percent of the undisbursed value of their International Development Association projects.
Banga warned that “emerging markets are more stressed” by the economic effects of the Iran war, because “they already start from a more complicated fiscal and debt situation.”
He cautioned countries to “be careful” in responding to the economic crisis, to ensure that “you don’t end up using that moment to increase your fiscal challenges,” for example, by implementing “subsidies you could not afford.” That could “put your country into an even bigger problem downstream,” he said.
“A lot of the countries who are impacted by” the economic effects of the war in Iran “don’t control the conflict, but they can control other things,” Banga said. His recommendation: These countries should “focus on policies and reform that they can undertake,” primarily in order to “create jobs.”
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APRIL 2 | 5:24 PM ET
No IMF and World Bank spring meetings without a global crisis
Once again, the spring meetings of the International Monetary Fund (IMF) and the World Bank Group—scheduled for April 13 through 18—will take place against the backdrop of a global economic and financial crisis. Triggered by the Iran war and the de facto closure of the Strait of Hormuz, global supply chains have been severely disrupted, threatening not only global energy markets but also the artificial intelligence (AI) investment boom, which has played a central role in driving global economic growth.
For the Bretton Woods institutions, the supply-side nature of the crisis poses a difficult challenge. Beyond preparing to provide financial support to member countries hit hardest by the Iran war, it remains unclear what policies they can recommend to key member states to manage the fallout. There is a risk that the IMF will produce rigorous analyses and conceptually sound policy recommendations—yet may still fall short of fully addressing the crisis at hand.
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MARCH 20 | 3:34 PM ET
In the Iran crisis, the IMF’s voice is urgently needed
Three weeks into the most significant disruption to global energy markets since the 1973 oil embargo, the International Monetary Fund (IMF)—the institution created to safeguard the stability of the international monetary system—has yet to provide a clear, comprehensive view of the economic fallout.
Policymakers around the world, market participants, and the general public would all benefit from the IMF’s insights into the unfolding Iran crisis and the consequences of Tehran’s de facto blockade of the Strait of Hormuz. After all, the institution has unmatched access to financial markets, central banks, and finance ministries around the world.
So far, however, the Fund has issued only a few statements. On March 3, it said that it was “closely monitoring developments,” and Managing Director Kristalina Georgieva—speaking during a trip to Asia—urged countries to “think about the unthinkable and get ready for it.” Yesterday, an IMF spokesperson provided estimates for the impact of oil prices should they remain elevated for a year and raised concerns about economically vulnerable countries.
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Further reading
Wed, Apr 8, 2026
Ajay Banga on responding to this economic crisis: ‘Focus on policies’ that ‘create jobs’
Event Recap By Katherine Golden
At an AC Front Page event, Banga cautioned countries to "be careful" not to “put your country into an even bigger problem downstream" while responding to the Iran war.
Thu, Apr 2, 2026
No IMF and World Bank spring meetings without a global crisis
Econographics By Hung Tran
The Iran war's supply-side shock is testing the IMF and World Bank ahead of their 2026 spring meetings. While financial support is in the works, it’s unclear what policy recommendations they can offer member states to manage the fallout.
Fri, Mar 20, 2026
In the Iran crisis, the IMF’s voice is urgently needed
Econographics By Martin Mühleisen
As the Iran crisis chokes the Strait of Hormuz and rattles global energy markets, the IMF has offered little more than cautious statements. The institution must develop real-time, scenario-driven analysis.
Image: IMF Managing Director Kristalina Georgieva delivers a speech ahead of the IMF/World Bank's spring meetings in Washington, DC, on April 9, 2026. (REUTERS/Ken Cedeno)