With tensions escalating in West Asia, the International Monetary Fund on Tuesday said it is closely tracking the situation but cautioned that it is “too early to assess the economic impact on the region and the global economy,” as disruptions to trade and energy markets intensify.
In a statement, the IMF said it has “observed disruptions to trade and economic activity, surges in energy prices, and volatility in financial markets.”
“The situation remains highly fluid and adds to an already uncertain global economic environment,” it said, reported ANI.
“It is too early to assess the economic impact on the region and the global economy. That impact will depend on the extent and duration of the conflict,” the IMF added.
The remarks come as governments evaluate the fallout of the widening hostilities in the region, particularly on oil supplies and global financial stability.
In India, Petroleum and Natural Gas Minister Hardeep Singh Puri earlier said the country is “fully prepared amid evolving situation in the Middle East and energy supplies are robust.”
He stated that “the country is well stocked with crude oil and inventories of key petroleum products including petrol, diesel and ATF to deal with short-term disruptions arising from the Middle East.”
According to the minister, Indian energy companies have access to supplies that are not routed through the Strait of Hormuz, and such cargoes will remain available to mitigate any temporary disruptions affecting shipments passing through the strait.
The Petroleum ministry has also set up a 24×7 Control Room to continuously monitor supply and stock positions of petroleum products across the country.
The government is “reasonably comfortable in terms of stocks,” the minister said, adding that safeguarding the interests of Indian consumers remains the highest priority. Based on continuous monitoring, the government is cautiously optimistic that phased measures can be taken, if required, to further mitigate the situation.
Government sources said India currently holds about eight weeks of crude oil and petroleum product inventories, including strategic reserves. They added that only about 40 per cent of India’s crude oil imports transit through the Strait of Hormuz, limiting exposure to regional disruptions.
Sources maintained that the country remains in a comfortable position on energy security and is closely monitoring developments, while being prepared to manage potential supply-side challenges through adequate inventory levels and diversified sourcing.
