The International Monetary Fund has lowered its global growth forecast for the world economy this year to 3 per cent, down from 3.5 per cent in 2025.
In its latest World Economic Outlook, it warns that conflict in the Middle East, higher energy prices, and ongoing geopolitical uncertainty continue to weigh on global output growth.
The forecast reflects the damaging toll from the decision by the United States and Israel to strike Iran earlier this year.
Tehran responded by closing the strategic Strait of Hormuz and attacking energy infrastructure in the region.
In addition, strikes on tankers in the waterway this week have raised doubts about whether a recent ceasefire between Washington and Tehran will hold.
