The Chair of the International Monetary and Financial Committee stated in a declaration that the Middle East conflict represents a major shock, posing a severe threat to the global economy, with the most significant impact expected on the world's poorest nations. In a Friday statement, the committee's Chair and Saudi Finance Minister Mohammed Al-Jadaan noted that the global economy has faced repeated shocks from wars and conflicts in recent years, including the latest escalation in the Middle East. He warned that a prolonged conflict could lead to sustained increases in fuel and fertilizer prices, disrupt the supply of critical inputs, and heighten risks related to energy and food security, global economic stability, inflation, and external balances. Sources familiar with the matter indicated that the United States advocated for referring to the situation in the Middle East as a "conflict" rather than a "war" in the declaration. The individuals requested anonymity as the document has not yet been made public. Since the U.S. and Israel launched strikes against Iran in late February, the Strait of Hormuz has been effectively closed, with its reopening prospects remaining uncertain as of Friday. Iran stated it would reopen the strait during a ten-day ceasefire between Israel and Lebanon's Hezbollah, but cautioned that it could close again if U.S. blockades persist. Al-Jadaan, speaking at a press conference at IMF headquarters in Washington, described the situation as highly fragile and volatile. He noted that while any de-escalation would be positive, convincing insurance companies to resume coverage for vessels would present a challenge. The committee's declaration also emphasized that it would closely monitor and address vulnerabilities in the financial system and risks to financial stability, including by strengthening oversight of systemic risks arising from artificial intelligence, non-bank financial institutions, and digital assets.