The global economy is at risk of recession if the US-Israel war with Iran continues and high energy prices persist, the International Monetary Fund (IMF) has warned.
In its World Economic Outlook report, the IMF said in a worst case scenario - where oil, gas and food prices spike and remain high this year and next - global growth could fall below 2% in 2026.
"This would mean a close call for a global recession which has happened only four times since 1980," it said, the most recent being during the Covid pandemic.
Energy prices have soared since the war began more than six weeks ago after the key Strait of Hormuz shipping route effectively closed and peace talks between the US and Iran failed.
The IMF said: "Once again, the global economy is threatened with being thrown off course - this time by the outbreak of war in the Middle East at the end of February 2026."
