OECD Warns of Global Economic Slowdown Due to Iran War Energy Disruption
The Organization for Economic Cooperation and Development (OECD) has issued a warning regarding the potential severe impact on the global economy due to prolonged disruptions in energy supplies from the Middle East, specifically linked to the ongoing conflict involving Iran. The closure of the Strait of Hormuz, a critical passage for oil and gas shipments, has significantly reduced the flow of energy resources, affecting global markets. The OECD report outlines two scenarios: a prolonged disruption could lead to a global growth slowdown to 2.1% this year and 1.8% in 2027, potentially pushing some economies into recession. Alternatively, if the disruption is temporary and energy production resumes by mid-year, growth could slow to 2.8% this year but rebound to 3.1% next year. The report highlights the vulnerability of Asian economies reliant on Persian Gulf energy supplies and poorer countries where a significant portion of income is spent on fuel and food. 
