Widening Middle East conflict could pose significant economic risks: IMF

The International Monetary Fund (IMF) said that the escalation of the conflict in the Middle East could have significant economic repercussions for the region and the global economy, Reuters reported, citing IMF Spokesperson Julie Kozack.

"The potential for further escalation of the conflict heightens risks and uncertainty," said Kozack, adding that it is too early to predict specific impact on the global economy.

The main channels for the conflict to affect the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks in the Red Sea, Kozack noted.