The International Monetary Fund is preparing to assist countries facing balance of payment pressures as Middle East conflict disrupts global oil markets. IMF Managing Director Kristalina Georgieva said demand for the fund's programs will likely increase, especially as foreign aid declines. About 50 countries already depend on IMF support for their balance of payment needs.

Georgieva warned that a 10% energy price increase lasting a year would raise inflation by 40 basis points and slow growth by up to 0.2%. She expressed particular concern for Pacific Island nations, low-income countries, and those with high debt levels. Central banks must prepare for both inflationary pressures and weaker currencies that make foreign debt servicing more expensive.

The IMF chief urged countries to build fiscal capacity, strengthen institutions, and diversify energy supplies. She warned of a "world of more frequent, more unexpected shocks" including disruptive technology and trade conflicts. With shipping through the Strait of Hormuz dwindling and oil prices spiking, the IMF aims to serve as an "anchor of stability" for vulnerable economies.