IMF Warns of Severe Economic Impact if Middle East Conflict Extends to 2027
IMF Managing Director Kristalina Georgieva warned that the ongoing US-Israeli conflict with Iran could lead to severe global economic consequences if it continues into 2027. The closure of the Strait of Hormuz, a critical oil passage, has already caused oil prices to rise, with potential increases to $125 per barrel. This scenario could lead to higher inflation and economic slowdown. The IMF's 'adverse scenario' predicts global growth slowing to 2.5% in 2026, with inflation at 5.4%. The conflict's impact on supply chains, particularly in oil and fertilizer, is causing price increases, affecting global food prices and other industries. 
