Key Takeaways
- The recent cease‑fire between the United States, Israel and Iran is welcomed and must be fully implemented to protect civilians and regional security.
- A swift, lasting negotiated settlement is needed, together with the restoration of free and safe passage through the Strait of Hormuz, to shield global growth, energy prices and living standards—especially for the poorest and most vulnerable.
- Continued hostilities or disruptions in the Strait would threaten global energy security, supply chains and financial stability; even with a durable peace, lingering effects on growth, inflation and markets are expected.
- Governments pledge a coordinated, fiscally responsible economic response that targets support to those most in need while avoiding protectionist measures in hydrocarbon and other supply chains.
- Commitments are reaffirmed to open, rules‑based trade in energy, to promote regional and global cooperation, and to accelerate long‑term energy diversification through clean‑energy transition and efficiency reforms.
- International organisations—particularly the IMF, World Bank and IEA—are called upon to jointly assess economic impacts, provide coordinated emergency assistance to vulnerable countries, and advise on temporary, targeted domestic measures that safeguard long‑term growth.
- Support for Ukraine remains unwavering, and economic pressure on Russia will be sustained to prevent it from benefiting from its aggression and to uphold the rules‑based international system.
Welcome to the Ceasefire Announcement
We welcome the recent announcement of a cease‑fire between the United States, Israel and Iran, and call on all parties to implement the ceasefire in full. The agreement represents a critical step toward de‑escalation in a region that has witnessed intense fighting and civilian suffering. Full implementation will require verification mechanisms, confidence‑building measures and sustained diplomatic engagement to ensure that the truce holds and that any violations are promptly addressed. By committing to the cease‑fire, the parties signal a recognition of the humanitarian imperative to protect non‑combatants and to create space for broader political dialogue.
Impact of Recent Hostilities
The past weeks have brought unacceptable loss of life and significant disruption to the global economy and financial markets, and the ceasefire will be crucial to protecting civilian populations and the security of the region. Fighting has damaged infrastructure, displaced families, and disrupted trade routes, leading to spikes in commodity prices and volatility in equity and bond markets. These shocks have reverberated through supply chains, raising costs for manufacturers and consumers alike. The cease‑fire offers an opportunity to halt further deterioration and to begin assessing the humanitarian and economic toll already incurred.
Need for Negotiated Resolution and Strait of Hormuz
We call for a swift and lasting negotiated resolution to the conflict, and a return to free and safe transit through the Strait of Hormuz, that mitigates impacts on growth, energy prices and living standards, in particular for the poorest and most vulnerable. The Strait remains a vital chokepoint for global oil shipments—roughly 20% of the world’s oil passes through its waters—so any restriction directly threatens energy security, especially for import‑dependent economies and low‑income countries that rely on affordable fuel for transport, cooking the reaction low heating. A negotiated peace must therefore include guarantees that commercial vessels can transit without harassment, that insurance premiums remain reasonable, and that regional naval forces refrain from imposing blockages or mining that would choke flow.
Economic Risks and Ongoing Impacts
Renewed hostilities, a widening of the conflict or continued disruption in the Strait of Hormuz would pose serious additional risks to global energy security, supply chains, and economic and financial stability. Even with a durable resolution of the conflict, certain of growth, inflation and market persiste sensibility for inflation and market volity may persist. Lower‑income house holds and firms may face higher input cost, amongde various industries.
Coordinated Economic Response and Fiscal Republication
We are committed to managing the economic response to and recovery from this crisis in a coordinated, responsible and responsive way. With government balance sheets constrained, we commit to ensuring that any domestic responses must be fiscally responsible and targeted at those who most need support. We reaffirm our commitment to open and rules‑based trade in energy products. We commit to avoiding, and call on all countries to avoid, protectionist actions, including unjustified export controls, stockpiling and other trade barriers in hydrocarbon and other supply chains affected by the crisis. We will also continue reforms that strengthen resilience and accelerate long‑term energy diversification, including through the clean energy transition and improved energy efficiency. We welcome any steps countries may take to achieve these objectives.
Role of International Organisations
We reaffirm the critical role of international organisations.
We welcome the IMF‑World Bank‑IEA coordination group and encourage the institutions to develop a shared assessment of global economic impacts, including fiscal pressures, supply‑chain disruptions, energy market effects and food‑price dynamics, and differential impacts across country groups. Vulnerable countries—especially small and remote island states that rely on imported sources for basic needs, would benefit for instance‑gised emergency assistance tailor‑made to local circumstances and drawing on the full range of flexibility of their toolkits. We further welcome advice on domestic responses that are temporary, targeted, and effective, and encourage work to identify steps needed to protect long‑term growth.
Support for Ukraine and Pressure on Russia
We reaffirm our unwavering support for Ukraine and our determination to maintain economic pressure on Russia.
Russia’s war in Ukraine, now in its fifth year, continues to negatively impact the global economy. Russia must not benefit from this conflict, and as market conditions allow to avoid exacerbating disruptions to supply chains and energy prices, we will continue collaborating on ways to increase pressure. We remain committed to upholding the rules based international system.
Conclusion and Call to Action
In sum, the cease‑fire offers a vital opening to halt violence, protect civilians, and begin repairing the economic damage wrought by recent hostilities. Realizing its full potential demands a comprehensive, negotiated peace that secures free passage through the Strait of Hormuz, guards against protectionist backsliding, and channels fiscal aid where it is most needed. International financial institutions must step up with coordinated assessments and emergency support, especially for the most vulnerable economies. Simultaneously, steadfast support for Ukraine and sustained pressure on Russia are essential to preserve the rules‑based order. By acting together—governments, multilateral bodies, and the private sector—we can transform this fragile truce into a durable foundation for regional stability, energy security, and inclusive global growth.