Iran War

From energy price spikes to shipping restrictions and supply chain disruptions, the onset of war in the Middle East has resulted in almost-immediate rippling effects around the world. Low- and middle-income countries, already exposed to shocks, face energy emergencies, food insecurity, fertilizer shortages, health risks, declining remittances, and more.

CGD experts are analyzing developments and assessing options policymakers have to mitigate impacts on vulnerable countries.

More from the Series

Blog Post

Doing the Right Thing at a Cost: Africa’s Response to the Oil Price Shock

May 13, 2026
The Middle East war has triggered a sharp contraction in the oil supply that passes through the Strait of Hormuz, driving up global energy prices and forcing governments across the world to choose how much of that cost to pass on to households. Their responses have diverged markedly. Because energy ...
Blog Post

CGD Podcast: What Does the Iran War Mean for Low- and Middle-Income Countries? With Liliana Rojas-Suarez and Catherine Pattillo

April 13, 2026
CGD's Clemence Landers, Liliana Rojas-Suarez, and Catherine Pattillo look at how the Iran war compares to recent shocks like COVID-19 and the war in Ukraine, how governments are responding—from fuel subsidies to rationing and currency interventions—and where the pressure is most acute, including in ...
Blog Post

Between Iran and a Hard Place: Crisis-Weary Stakeholders Face Another Major Setback

April 07, 2026
Stakeholders gathering for the upcoming Spring Meetings of the IMF and World Bank will be contending with yet another major crisis—war in the Middle East—with ramifications expected to include dampened growth, inflation, and tighter financial conditions that will reverberate far beyond the zone of c...
Blog Post

Stress-Tested by War: Modernizing IMF Support in a Volatile World

April 06, 2026
Despite the heavy-hitting byline, the IMF's blog post on the economic fallout from the Iran war leaves me with two overarching questions: First, is IMF surveillance agile and forward-looking enough to respond to today’s economic shocks? Second, given the exceptional nature of this shock, what should...