Finance ministers of 11 countries urge IMF and World Bank to provide emergency assistance

Finance ministers from 11 countries have called for emergency support from the International Monetary Fund (IMF) and the World Bank (WB), warning that renewed conflict, escalation, or prolonged disruption near the Hormuz Strait could threaten energy security, supply chains and global macroeconomic stability. In a joint statement issued April 15, the ministers urged the IMF and WB to provide “emergency coordinated support, tailored to each country’s conditions and leveraging all available tools.” They added that even if the conflict is resolved sustainably, its effects on growth, inflation and markets would likely persist.

Estimated reconstruction costs in the Middle East

Rystad Energy’s latest report estimates that restoring damaged energy infrastructure in the Middle East could cost up to $58 billion, including about $50 billion in direct damages to oil and gas facilities. The estimate has risen sharply from $25 billion three weeks earlier, as military attacks continued before a temporary ceasefire between the US and Iran took effect on April 8.

Rystad Energy: losses extend beyond physical damage

Rystad Energy senior analyst Karan Satwani said the situation is not only about physical losses, but also a test of the resilience of the global energy supply chain. He noted that the equipment and contractors needed for reconstruction are currently tied up with LNG projects and offshore projects approved since 2023.

Satwani said repairing infrastructure would not create new production capacity, but would instead reallocate existing resources—potentially causing delays and contributing to energy inflation beyond the region. He also emphasized that physical damage is only part of the broader concern, pointing to knock-on effects on global energy investment.

Policy responses and energy management measures

The tensions are also influencing energy prices and national policy responses.

Thailand: consumer support and electricity price caps

Thai Prime Minister Anutin Charnvirakul said the government is closely monitoring Middle East tensions and stressed the need for careful energy management, even though Thailand does not face fuel shortages. He said the Khon La Khrueng Plus program will be rolled out soon, with the program possibly renamed “Thai people helping Thai people.” Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas outlined a new framework with greater benefits.

Under the flagship program, low-cost consumer goods will be expanded, with district offices nationwide serving as distribution points in cooperation with retailers.

Anutin also disclosed additional measures, including price support for the first 200 units of electricity consumption, capped at no more than 3 baht per unit for all users, with higher rates applying gradually to additional usage.

Canada: temporary suspension of federal gasoline and diesel excise tax

In North America, Canada announced the temporary suspension of the federal excise tax on gasoline and diesel from April 20 to September 7, aiming to reduce fuel costs for residents amid volatile energy prices. Prime Minister Mark Carney described the move as a targeted, temporary measure to ease fuel costs for citizens.

Carney added that tax measures must be balanced against other spending priorities, including child care and dental care programs. He also argued that addressing domestic affordability issues, expanding housing supply, and accelerating approvals for large-scale national infrastructure projects are the best ways to respond to the global economic shock from the conflict.