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2026-10-22T14:15:00.000Z

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Oil surpasses $130 amid IMF war concerns

Oil surpasses $130 amid IMF war concerns

The International Monetary Fund (IMF) expects the economies of the Middle East and North Africa, and Pakistan, to contract by 1.3% in 2026, while a growth rate of 6.6% is anticipated in 2025. The region is likely to experience a gradual recovery as conflicts subside, and trade activity and energy production pick up. The IMF warned that ongoing disruptions in energy production and trade routes could prolong the effects of this downturn, with the possibility of oil prices reaching $130 per barrel, especially under the worst-case scenario if the war continues into the second quarter of 2027. The Fund recommended that the affected countries strengthen economic resilience, maintain price stability, diversify economic activities, and temporarily support the most vulnerable groups. It also emphasized the importance of deepening regional integration to capitalize on technological shifts, thereby reducing the impact of external shocks and supporting sustainable growth.

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