Iran War’s Economic Toll: 27 Nations Seek Emergency World Bank Funds as Global Crisis Deepens

New York
An internal World Bank document reviewed by Reuters reveals that 27 countries are seeking rapid access to crisis financing mechanisms in response to the economic shockwaves caused by the ongoing Iran war — adding a stark new dimension to a conflict whose consequences are reverberating far beyond the Middle East.
The document, released Friday, does not identify the countries by name nor specify the total amount of funding being sought. However, Kenyan and Iraqi officials have publicly confirmed they are among those pursuing emergency financial assistance from the Washington-based lender.
According to the document, three countries had already approved emergency procedures by February 28, the day the United States and Israel launched military strikes against Iran. The remaining nations are still working through the process.
The economic fallout has been wide-ranging. The war has disrupted global energy markets, strained international supply chains, and halted critical fertiliser shipments to developing nations. Kenya is grappling with soaring fuel prices, while Iraq has reported a sharp decline in oil revenues — a particularly damaging blow for a country almost entirely dependent on hydrocarbon income.
The 27 countries are drawn from a broader pool of 101 nations that have pre-arranged financial instruments with the World Bank, including 54 that have signed up for a Rapid Response Option allowing them to immediately deploy up to 10 percent of their undisbursed loan balances in a crisis.
World Bank President Ajay Banga said last month that the bank’s crisis toolkit could provide countries with access to between $20 and $25 billion through pre-arranged emergency financing and fast-disbursing instruments. He added that portfolio adjustments could raise the total to $60 billion within six months, and to nearly $100 billion through longer-term restructuring.
Meanwhile, IMF Managing Director Kristalina Georgieva had earlier projected that around a dozen countries would seek between $20 and $50 billion from the Fund. However, sources familiar with the situation say very few formal requests have been filed so far, with most governments adopting a cautious wait-and-see posture.
Experts note that many countries prefer World Bank support over IMF programmes because the latter typically require austerity conditions that could exacerbate existing social unrest — a particularly sensitive concern in countries like Kenya, which have already seen public protests in recent years.
The figures underscore the growing global economic cost of the Iran conflict, even as diplomatic efforts to end the fighting appear to be gathering pace.