May 14, 2026
The Iran war is threatening to exact a major hit on the global economy as negotiations for a lasting ceasefire remain at an impasse, the International Monetary Fund (IMF) has warned.
With the conflict now in its third month, negotiations between Washington and Tehran on a durable ceasefire remain at a standstill, and global oil supply chains continue to face disruptions due to the closure of the Strait of Hormuz.
The war was already expected to create a drag on global growth and raise inflation. In its reference forecast released in April, the IMF projected global growth to slow from 3.4 per cent last year to 3.1 per cent this year. Inflation was forecast to increase to 4.4 per cent.
Hormuz blockade 'wreaking havoc' on global economy, warns China's UN envoy
