Oil prices skyrocketed by 30% on Monday, surpassing $115 per barrel in what analysts describe as a historic jump, driven by escalating conflict in the Middle East amid the continued US-Israeli aggression against Iran and the subsequent Iranian response.
The sharp increase in crude prices has raised concerns among global financial institutions regarding the stability of the world economy.
In response to the unfolding situation, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated that the world is facing a new test of resilience in the Middle East due to the renewed conflict.
Georgieva warned that if the crisis persists, it will clearly impact market sentiment, economic growth, and inflation rates worldwide.
Providing a stark assessment of the potential consequences, she explained that every 10% increase in oil prices, if sustained for most of the year, would lead to an increase of approximately 40 basis points in global inflation.
The IMF chief emphasized that her advice to policymakers navigating this new global climate is to carefully consider and prepare for unforeseen scenarios.
Source: Agencies (edited by Al-Manar)