The International Monetary Fund (IMF) is warning that the Middle East conflict poses risks for global inflation and has made energy security a top concern. Managing Director Kristalina Georgieva said a 10% increase in oil prices, if persistent through most of the year, would result in a 40-basis-point increase in global inflation.

“We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva said, speaking in a symposium hosted by Japan’s finance ministry.

“My advice to policymakers in this new global environment is to think of the unthinkable and prepare for it,” she said.

(Reuters)