Managing Director Kristalina Georgieva said the war had caused the most severe disruption to global energy supply on record, with millions of barrels of oil production shut down due to Iran’s effective closure of the Strait of Hormuz.

“Instead, all roads now lead to higher prices and slower growth,” Georgieva told Reuters, adding that the IMF would cut its growth forecasts and raise inflation projections in its upcoming World Economic Outlook.

The conflict is expected to dominate discussions at next week’s IMF and World Bank spring meetings in Washington, where policymakers will assess the economic fallout from the crisis.

The Fund had previously anticipated a modest upgrade to global growth projections before the escalation.Georgieva said global oil supply had fallen by about 13%, with knock-on effects extending beyond energy markets into supply chains for commodities such as fertilizers and helium.

Brent crude prices have risen to around $110 per barrel, reflecting tightening supply conditions.She warned that even a swift resolution would leave a lasting economic impact, while a prolonged conflict would deepen inflationary pressures and further dampen growth prospects.

The effects are expected to be uneven, with energy-importing countries facing the greatest strain. Many low-income economies lack the fiscal capacity to cushion rising costs, increasing risks of economic instability and social unrest.

Georgieva said some countries had already sought financial assistance from the IMF, which could expand existing lending programs to address urgent needs. She cautioned against broad energy subsidies, arguing they could exacerbate inflation.Energy exporters have also been affected.

Damage to production infrastructure has slowed output recovery in some countries, including Qatar, where restoration of natural gas capacity could take several years.The IMF is coordinating with other global institutions, including the International Energy Agency and the World Bank, to assess the broader implications of the conflict.

Georgieva also highlighted risks to food security, noting that disruptions to fertilizer supplies could trigger wider shortages if the conflict continues.

The World Food Programme has warned that millions could face acute hunger if conditions worsen.

During his stay in Japan, Macron signed a cooperation roadmap covering critical minerals and defense, and held talks with Prime Minister Sanae Takaichi, alongside a meeting with the imperial couple.

He also praised Europe’s “predictability,” in comments widely interpreted as a contrast with recent U.S. policy decisions.The remarks followed criticism from Trump, who described France as “very unhelpful” in the Iran conflict and made personal jibes at Macron.

The exchange highlights growing transatlantic friction as the war continues to reshape global alliances.Macron’s visit to South Korea comes amid heightened geopolitical and economic uncertainty, particularly linked to disruptions in the Strait of Hormuz, a vital route for global energy supplies.

The waterway’s effective closure has driven up oil prices and strained import-dependent economies across Asia.South Korean President Lee Jae Myung called for deeper cooperation with France in an opinion article, emphasizing collaboration in artificial intelligence, nuclear energy, hydrogen technologies and space.

“In an increasingly fragmented and uncertain international environment, partnerships between democratic nations are becoming strategically essential,” Lee wrote.

Seoul has already introduced a fuel price cap to cushion the economic impact of rising energy costs, marking its first such intervention since 1997.Macron’s itinerary in South Korea includes a bilateral summit with Lee, participation in an economic forum, and a visit to a Korean War memorial honoring French troops.

The trip also features cultural engagements, including a dinner with figures from the country’s film and music industries.

The visit underscores France’s effort to deepen ties in the Indo-Pacific while navigating diplomatic strains with Washington over the direction and handling of the Iran conflict.

Education Minister A.N.M. Ehsanul Hoque Milon said the proposal is under active review following discussions with Prime Minister Tarique Rahman, as authorities look to reduce fuel consumption while maintaining academic continuity.

The plan would introduce a mixed system combining online and in-person classes, initially for schools, with discussions ongoing on extending it to colleges. Universities may adopt separate arrangements, the minister said.

Officials cited a recent survey indicating that about 55% of students and guardians support a hybrid model, though concerns remain that fully online learning could increase social isolation.

Bangladesh’s move comes as rising global oil prices, driven by instability in the Middle East, strain domestic fuel supplies. The country relies on imports for around 95% of its energy needs, leaving it vulnerable to external shocks.

Authorities have already introduced measures to manage shortages, including fuel rationing, limits on vehicle fuel sales and reduced operating hours for fuel stations amid reports of panic buying and hoarding.

The government is also evaluating additional steps such as expanding remote work for offices and adjusting weekly holidays to reduce overall energy consumption.

Officials said Bangladesh is seeking more than $2.5 billion in external financing to support imports of fuel and liquefied natural gas, as pressure mounts on foreign exchange reserves.

The temporary tax cut will lower fuel costs by 26.3 Australian cents per litre, Albanese said, while the government will also remove the heavy road user charge.

Treasurer Jim Chalmers said the combined measures would cost about A$2.55 billion.

Global oil markets have tightened sharply after disruptions to shipments through the Strait of Hormuz, through which around one-fifth of global supply previously passed. Brent crude has risen 59% in March, reaching $115.66 per barrel at the start of trading on Monday.

Domestic fuel prices have climbed in response, with diesel exceeding A$3 per litre and petrol reaching A$2.50, according to industry data.

Energy Minister Chris Bowen said the government would use expanded powers to support fuel imports, including underwriting high-cost spot cargoes through Export Finance Australia to ensure supply continuity.

The move aims to assist smaller fuel importers that may be unable to absorb the risks of volatile prices.

Canberra said Australia currently holds fuel reserves equivalent to about 30 days of diesel and jet fuel, and 39 days of petrol, below the 90-day level recommended by the International Energy Agency.

Officials said the country remains at level two of a national fuel security framework focused on maintaining transport and supply chains, warning that prolonged conflict could intensify economic pressures.

The HSBC flash India Composite Purchasing Managers’ Index, compiled by S&P Global, fell to 56.5 from February’s 58.9, missing expectations in a Reuters poll and marking the sharpest slowdown in 18 months. While readings above 50 indicate expansion, the drop signalled a loss of momentum at the end of the fiscal year.

Manufacturing slowdown deepensThe manufacturing sector bore the brunt of the slowdown, with its PMI declining to a 4-1/2-year low of 53.8 from 56.9. Factory output growth weakened to its softest pace since August 2021, reflecting heightened uncertainty and subdued consumer demand.

The services sector, which makes up the bulk of India’s economy, also eased, with its PMI slipping to 57.2 from 58.1.Cost pressures intensifyInput costs rose at their fastest pace since June 2022, driven by higher prices for oil, energy, food, metals and chemicals.

Firms responded by increasing selling prices at the quickest rate in seven months, though some absorbed costs by compressing margins.India’s heavy reliance on imported energy has amplified the impact.

As the world’s third-largest oil importer, it sources about 90% of its crude and nearly half of its natural gas from overseas, making it vulnerable to price shocks linked to disruptions in the Strait of Hormuz. Oil prices have risen more than 40% since the conflict began.

External demand offers supportDespite weakening domestic demand, international orders rose to their highest level since the sub-index was introduced in 2014, with businesses reporting increased demand from Asia, Europe, the Americas and the Middle East.

Business confidence improved to its strongest level since September 2023, supporting the fastest pace of job creation since August, even as inflation risks mount and growth prospects face renewed pressure.