IMF Warns Global Growth Could Slip Toward Recession If Iran War Persists

The IMF’s World Economic Outlook warns that a prolongation of the US-Israel–Iran conflict with persistently elevated energy prices could push global growth below 2% in 2026, risking a global recession, with inflation potentially around 6% and central banks likely to raise rates; the UK is forecast to be the hardest hit among advanced economies, while Iran’s economy contracts this year before a potential rebound if the war ends soon and energy flows normalise.