World Bank President Ajay Banga stated on Wednesday that countries affected by the Iran conflict should brace for months of disruption linked to the hostilities, even if the current fragile ceasefire holds and the Strait of Hormuz reopens.

In an interview during the International Monetary Fund (IMF) Spring Meetings, Banga noted that even if the critical oil shipping route is no longer blocked, "it will still take months for everything to return to pre-war conditions."

"We must therefore be prepared for the possibility that these nations will face several months of instability," he added.

Banga indicated that the World Bank has prepared a "contingency funding" plan, which would provide varying levels of financial support to countries depending on the duration of the conflict.

"Thanks to our crisis response toolkit, World Bank member countries can access approximately $20 to $25 billion immediately, with funds available as early as tomorrow morning, without requiring new approvals," he said.

He further noted that if the conflict persists for five to six months, this amount could increase to $60 billion.

Banga pointed out that over the next 15 months, the World Bank could mobilize between $80 billion and $100 billion if needed.

He highlighted that during the COVID-19 pandemic, the World Bank had deployed only "$70 billion." He added, "Therefore, I am preparing a three-tier, three-phase contingency reserve to address the current situation."

Banga also mentioned that he has advised World Bank clients impacted by the conflict to prioritize inflation control above all else.

"Before focusing excessively on economic growth, it is essential to ensure that inflation is under control. This issue must be properly managed," Banga emphasized.