The International Monetary Fund (IMF) has extended its Staff-Monitored Programme with Haiti through June 2027 as rising oil prices linked to the conflict in the Middle East add fresh pressure on a country already battling gang violence, political instability and a seventh straight year of economic contraction.

In a statement released Thursday, the IMF said management approved the third review of the arrangement on May 5 and agreed to extend the programme through June 19, 2027, as Haitian authorities attempt to preserve macroeconomic stability during a fragile political transition and worsening humanitarian crisis.

A Staff-Monitored Programme is an informal arrangement used by the IMF to monitor reforms and build a policy track record but does not itself include IMF financing or executive board approval.

The fund warned that higher international oil prices have significantly increased Haiti’s fuel import bill and subsidy costs at a time when government finances are already under severe strain from insecurity, weak economic activity and institutional paralysis.

Brent crude traded above US$100 per barrel this week amid continued disruption linked to Iran’s blockade of the Strait of Hormuz, a crucial global oil shipping route, increasing pressure on fuel-importing economies across the Caribbean. The International Energy Agency warned this week that the global oil market could enter a “red zone” this summer if the waterway does not reopen.

“Haiti continues to face a severe humanitarian and security crisis, compounded by recurrent shocks and a fragile political transition,” the IMF said in the statement, describing the oil shock stemming from the Middle East conflict as “a major headwind”.

Approximately 5.7 million people in Haiti are facing food insecurity while about 1.45 million people have been internally displaced as gangs continue to undermine state authority across parts of the country. General elections expected later this year would be the country’s first in a decade, while a United Nations (UN) supported Gang Suppression Force that began arriving in April is not expected to be fully deployed until October.

Haiti’s economy contracted again during fiscal year 2025, marking a seventh consecutive year of decline, with another contraction expected in FY2026 as insecurity, weak lending activity and political uncertainty continue weighing on economic activity.

Despite the instability, Haiti met all programme targets at end-December 2025, including revenue, reserve accumulation, primary balance and social spending goals.

International reserves reached US$1.76 billion in December 2025, while gross reserves are projected at roughly US$3.4 billion by the end of FY2026, representing more than seven months of prospective imports of goods and services.

Strong remittance inflows have helped offset some of the external pressures created by higher oil prices, although the IMF warned that changes in foreign immigration policies could threaten those flows going forward.

The IMF said the monitoring arrangement is intended to help Haiti build a track record of policy implementation that could eventually support access to more formal IMF financial assistance, making continued programme performance important as the country confronts worsening fiscal and humanitarian pressures.

The programme will continue focusing on governance reforms, anti-corruption measures, tax administration, financial system supervision and improving budget execution as authorities attempt to stabilise public finances and preserve basic economic functioning.

The IMF also stressed that future external support for Haiti should come primarily through grants rather than non-concessional borrowing, warning that additional debt pressures could further weaken an already fragile public sector balance sheet as the country navigates elections, insecurity and rising global energy costs.