IMF, World Bank and IEA leaders say they will continue to work together to respond to world’s greatest energy shock ever
- Birol says assessing the situation regarding need for further release of reserves, and ready to act immediately if needed.
- Birol says April energy impact of war may be worse than March, notes no Country will remain unscathed.
- Birol says some countries are adding stocks to their existing reserves and adding export restrictions, which is not comforting markets.
- IMF chief says continued closure of strait of Hormuz for prolonged period will result in more severe impact on growth and inflation.
Context
The comments from leaders of the IMF, World Bank, and IEA underscore the significant global economic ramifications due to ongoing energy disruptions. The indication of potential further reserve releases and the worsening outlook on energy impacts suggests heightened volatility in oil markets, which could feed into inflationary pressures and growth forecasts. Traders should be cautious, as prolonged disruptions could prompt shifts in fixed income and FX markets due to changes in risk sentiment and expectations around central bank policies.
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