WASHINGTON (FN), The International Monetary Fund cautioned Tuesday that the global economy could slide into recession if the war in Iran drags on, citing mounting instability in energy markets and heightened geopolitical tensions.
The IMF said prolonged conflict threatens to disrupt oil supplies, drive up inflation, and weaken growth worldwide. “The longer hostilities persist, the greater the risk of a broad-based slowdown,” the organization noted in its latest outlook.
Economists warn that sustained volatility could undermine fragile recoveries in Europe and Asia, while developing nations may face sharper financial pressures. The IMF urged policymakers to prepare coordinated responses to stabilize markets and protect vulnerable economies.
