The International Monetary Fund (IMF) on Tuesday (03) said it is closely monitoring the unfolding developments in the Middle East, warning of emerging disruptions to trade and economic activity alongside rising global uncertainty.

In a statement issued from Washington, DC, the IMF noted that the situation has already led to disruptions in trade flows and broader economic activity, while triggering surges in energy prices and heightened volatility in financial markets.

The Fund said the evolving crisis is adding to an already uncertain global economic environment. However, it stressed that it is still too early to assess the full economic impact on the Middle East region or the global economy.

According to the IMF, the ultimate impact will depend on the extent and duration of the conflict.

The Washington-based lender said it will provide a more comprehensive assessment of the situation in its upcoming April edition of the World Economic Outlook.