World Bank Warns of Hunger Crisis from Iran Conflict

In an interview on Wednesday, World Bank chief economist Indermit Gill warned of a looming hunger crisis stemming from the conflict in Iran. He stated that the war could push an additional 300 million people into acute food insecurity, a 20% increase.

Gill spoke on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, emphasizing that the conflict's impact on oil supply through the Strait of Hormuz has already led to soaring fertilizer prices, which are critical for agricultural production. He noted that countries affected by the war might halt food exports and hoard supplies, further driving up food prices.

Gill projected that if the situation remains unresolved, hunger will increasingly affect fragile governments. He warned that the crisis could lead to a 40% reduction in global growth on an annual basis, with inflation rising significantly, particularly affecting low-income populations who spend a larger share of their earnings on basic needs.