IMF: Middle East conflict poses economic risks

The International Monetary Fund said an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, IMF spokesperson Julie Kozack said.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

She said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly.

The main channels for the conflict to impact 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 by Yemen's Houthi militants on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.