27 Countries Move to Unlock World Bank Crisis Funding as Iran War Disrupts Energy Markets

A growing number of governments are preparing emergency financial backstops after the economic shock triggered by the Iran war that began on February 28. According to an internal document reviewed by Reuters, 27 countries have started activating crisis-financing mechanisms within existing World Bank programs so they can access funds quickly if the situation worsens.

The move does not represent a single emergency payout yet. Instead, governments are putting procedural mechanisms in place—essentially pre‑authorizing the ability to redirect or draw funds rapidly if economic conditions deteriorate.

Why countries are seeking emergency access to World Bank funds

The demand for crisis financing is being driven largely by energy-market disruption and fiscal pressure caused by the conflict.

Many developing and emerging economies are particularly vulnerable to swings in fuel prices and shipping routes. Governments fear:

• Higher fuel import bills
• Inflation from rising energy costs
• Pressure on public budgets
• Slower economic growth tied to trade disruption

One major risk is instability around the Strait of Hormuz, a key global oil shipping route. Any disruption there could quickly drive up global oil prices, intensifying economic stress for energy‑importing countries.

These pressures have pushed governments to prepare financial buffers now rather than wait for a full‑scale crisis.

Kenya and Iraq: two different economic pressures

Although the countries seeking support face different economic realities, the underlying driver is the same—shock transmission from energy markets and regional instability.

• Kenya is seeking rapid financing because higher fuel import costs are straining its balance of payments and pushing up domestic prices.
• Iraq, despite being an oil exporter, has also sought emergency support because market disruption linked to the conflict is affecting oil revenues and fiscal stability.

These cases illustrate how global energy volatility can strain both importers and exporters through different channels.

How the World Bank’s Rapid Response Option works

One of the main tools countries are activating is the Rapid Response Option (RRO).

This mechanism allows governments to quickly repurpose up to 10% of undisbursed World Bank financing from existing projects—such as infrastructure or development programs—for emergency needs during a crisis.

Because the funds come from previously approved projects, countries can access them far faster than negotiating new loans.

The RRO can be combined with other emergency instruments within the World Bank system, including contingency financing and restructuring options designed to speed disbursement during shocks.

The broader Crisis Preparedness and Response Toolkit

The Rapid Response Option sits within the World Bank’s Crisis Preparedness and Response Toolkit, a framework designed to help countries respond quickly to sudden economic or humanitarian shocks.

Key features of the toolkit include:

• Pre-arranged crisis financing mechanisms
• Fast restructuring of existing loans
• Emergency funding windows activated during crises

The idea is to shift from slow, reactive lending toward pre‑positioned financial access so governments can respond immediately when crises strike.

How much money could be available

World Bank President Ajay Banga has said the toolkit could provide about $20 billion to $25 billion in funding almost immediately, because it draws on financing that has already been approved but not yet disbursed.

If the conflict continues or spreads, the Bank could potentially scale support significantly—possibly reaching $60 billion to $100 billion over time, depending on how countries restructure existing financing and activate additional tools.

Importantly, these figures represent potential access to funding, not a single committed package.

What we still don’t know

Despite the surge in activity, several key details remain unclear.

The internal World Bank document cited in reports does not publicly identify all 27 countries involved or specify how much funding each government may ultimately draw.

That means the current development is best understood as a global precautionary financial move: countries are preparing emergency funding channels now in case the economic fallout from the Iran war intensifies.

If energy markets remain volatile or shipping disruptions escalate, these pre‑arranged tools could become one of the fastest ways for vulnerable economies to stabilize budgets and respond to rising fuel and trade costs.