IMF and World Bank meetings expose limits of crisis response
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Global finance leaders gathered in Washington this week with a growing sense that the international system is struggling to manage a new wave of geopolitical shocks. The IMF and World Bank Spring Meetings were dominated by the Middle East war’s impact on energy prices and supply chains, while officials also confronted a deeper concern that relying on U.S. leadership to resolve crises is no longer as dependable as it once seemed.
The mood shifted repeatedly as hopes rose that Iran might reopen the Strait of Hormuz and allow oil, gas, fertilizer and other commodities to flow more freely again, only for those hopes to fade after new attacks on shipping. That uncertainty fed a broader realization that the most important decisions on the global economy are increasingly being made outside the meeting rooms in Washington.
The IMF and the World Bank pledged up to a combined $150 billion in new financing assistance for developing countries hit hardest by the energy shock, and warned governments not to hoard oil or rely on expensive, untargeted fuel subsidies. Even so, officials acknowledged that their room for manoeuvre was limited, especially as the global outlook worsened and the IMF said its own growth forecast could quickly be overtaken by a more negative scenario.
Saudi finance minister Mohammed Al-Jadaan captured that caution, saying he would not feel comfortable predicting a better outlook until tankers are moving freely through the strait again with insurance costs and physical energy prices both easing. The IMF’s latest World Economic Outlook said a prolonged war could still push the global economy into recession.
The meetings also highlighted how repeated shocks are reshaping policy thinking. After the pandemic, Russia’s invasion of Ukraine and last year’s tariff disruption, finance officials are increasingly focused on resilience, regional trade links and energy diversification rather than expecting any single power to restore stability. U.S. Treasury Secretary Scott Bessent’s call for coordinated action on fertilizer access was a reminder that the fallout is now reaching far beyond oil, with farmers already feeling the strain as planting seasons get under way.
