Fiji, April 17 -- The International Monetary Fund (IMF) says rising oil and gas prices linked to the Middle East conflict are set to weaken growth, raise inflation and strain economies across Asia and the Pacific, with small island states among the most exposed.

Speaking at a press conference during the Spring Meetings, IMF Asia and Pacific Director Krishna Srinivasan said the region entered 2026 strong but now faces mounting pressure from an energy shock.

"Asia entered 2026 on a solid footing with growth remaining resilient despite the region bearing the brunt of U.S tariffs and heightened uncertainty. However, given the region's high fossil fuel intensity and reliance on the conflict areas for key commodities, the new energy shock wil...