OECD Warns of Economic Slowdown Due to U.S.-Iran Conflict Impacting Global Growth
The Organisation for Economic Cooperation and Development (OECD) has revised its global growth forecast downward, citing the ongoing U.S.-Iran conflict as a significant factor. The OECD's June Economic Outlook projects global growth to decelerate from 3.4% in 2025 to 2.8% in 2026, with a potential recovery to 3.1% in 2027, contingent upon a resolution to the current energy price shock. The report highlights the critical role of the Strait of Hormuz, a vital shipping route, which has been disrupted due to the conflict, leading to increased energy prices and affecting industrial inputs like fertilizers. Stefano Scarpetta, the OECD's chief economist, emphasized that prolonged disruptions could further reduce global growth to 2.1% in 2026 and 1.8% in 2027, potentially pushing some economies into recession. 
