IMF: Escalation in Iran War Risks Global Recession

The International Monetary Fund (IMF) warns that a further escalation of the war in Iran could cause a global recession. It could also trigger rapidly rising inflation and a sharp drop in financial markets. The IMF has already cut its global economic growth forecast for 2026. It made this decision because of the damage the conflict has caused so far. The fund says the economic impact from the Middle East war is steadily increasing. The United States and the global economy overall received lower growth forecasts. Among major advanced economies, the UK suffered the sharpest downgrade.