Jihad Azour Warns Middle East’s Energy-Shock Buffers Are Running Low

Jihad Azour, the IMF’s Middle East and Central Asia director, warned on October 15 that the cushions protecting the region from the Iran war’s energy shock were diminishing. Speaking to reporters at the IMF and World Bank annual meetings in Bangkok, he said prewar surpluses, alternative transport routes, demand adjustment and inventory drawdowns had bought time. Falling inventories and tighter spare production capacity could leave markets facing sharper price increases if disruptions return. Azour identified prolonged war and renewed disruption to energy production, shipping or critical infrastructure as the region’s greatest downside risks.