The International Monetary Fund (IMF) has said that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year, Reuters reports.

IMF spokesperson Julie Kozack told a regular news briefing that the Washington-based global lender is closely monitoring the situation in southern Lebanon with “grave concern” and offered condolences for the loss of life.

“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, especially in Gaza, where the civilian population “faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

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