Fiji, April 17 -- The International Monetary Fund (IMF) has raised alarm over the impact of Middle East tensions on Pacific Island economies, warning that rising fuel costs will worsen living pressures in countries already struggling with high import dependence.

IMF Asia and Pacific Director, Krishna Srinivasan told PACNEWS the region faces serious risks, particularly small island states with limited economic buffers.

"So we are very concerned about the small states in the Pacific Islands because these countries' cost of living has been an issue even before the shock. They're highly dependent on imports of oil, gas, and so on, so forth. But it's diesel, kerosene, and so on. So we are very concerned."

Srinivasan said the geographic isol...