International Monetary Fund (IMF) spokesperson Julie Kozack stated that commodity prices declined after hostilities in the Middle East came to an end and measures were taken to reopen the Strait of Hormuz, although she emphasized that a return to normal conditions will require time.

Kozack reiterated that the conflict in the region once again put the resilience of the global economy to the test, The Caspian Post reports, citing Anadolu Agency.

She said the IMF continues to focus on three key channels when assessing the impact of the war on the world economy: commodity prices, inflation and inflation expectations, and financial conditions.

Commenting on commodity markets, Kozack noted that oil prices have fallen from the highs recorded during the conflict, but are still approximately 10% higher than the levels seen before the war.

She added that jet fuel prices have also eased, although they remain above pre-war levels. According to Kozack, prices for natural gas, base metals, urea, and certain fertilizers have likewise moved lower.

Addressing inflation and inflation expectations, Kozack said that some central banks opted to raise interest rates, while others chose to keep rates unchanged.

She added that the IMF generally considers inflation expectations to remain well anchored, but continues to urge central banks to stay alert to any signs that those expectations could weaken or become less stable.