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

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...
Blog Post

The Iran War Oil Shock Will Hit the Hungry Hardest—Cash Should Be Part of the Response

April 02, 2026
The US–Israel war on Iran has already led to a spike in oil prices. While wealthier countries focus on fuel prices, for those in low- and middle-income countries (LMICs), this could mean something far worse: a sudden increase in hunger and poverty, as rising food prices erode purchasing power. We ar...
Blog Post

Beyond Oil: The Budgetary Costs of Conflict in the Middle East

March 30, 2026
In a recent blog post, we argued that the increase in oil prices spurred by the war in the Middle East—particularly if sustained—will likely have major consequences for government budgets. Many governments, in both advanced and developing economies, are cushioning households and firms from higher en...