IMF warns Iran war could slow global growth in 2026
The International Monetary Fund, or IMF, is sounding the alarm: the ongoing war in Iran isn't just a local issue, it's set to slow down the world economy, even if a durable peace deal is reached.
Kristalina Georgieva, the IMF's managing director, explained that disruptions to vital energy routes like the Strait of Hormuz and shaky ceasefire talks are already making a mark.
She warned these "scarring effects" could drag down global growth in 2026.
IMF forecasts permanent living standards hit
Georgieva urged countries not to go solo with economic fixes, but instead focus on helping those hit hardest.
Her next IMF report expects living standards worldwide to take a permanent hit because of this conflict.
Andrew Bailey, governor of the Bank of England, called it a very big shock, tying recent market swings to all this instability in the Middle East.