The International Monetary Fund (IMF) has warned that global inflation could rise further if oil prices continue to increase due to the ongoing conflict in the Middle East. The warning came from IMF Managing Director Kristalina Georgieva on March 9 during a symposium organized by Japan’s Ministry of Finance. She noted that the recent escalation between the United States, Israel, and Iran has created instability in the global energy market.

Georgieva cautioned that if crude oil prices rise by 10 percent and remain elevated for most of the year, global inflation could increase by up to 40 basis points. She described the current global situation as uncertain and urged policymakers to remain vigilant and prepare for unexpected developments. The IMF chief emphasized that the Middle East conflict has once again put the resilience of the global economy to a serious test.

The remarks highlight growing concerns that prolonged geopolitical tensions could undermine economic stability and complicate inflation management worldwide.