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BRUSSELS — Renewed geopolitical tensions in the Middle East would hurt growth and stoke inflation, the International Monetary Fund warned Wednesday, as a fragile ceasefire between Iran and the U.S. threatens to fall apart after fresh military strikes on both sides.
In an update to its world economic outlook — which was written before news of the ceasefire unraveling — the IMF said “the most imminent risk” to the global economic forecast “stems from developments in the Middle East.”
A resurgence of conflict in the region “could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions,” the update stated.
