The Economic Fallout of War: A Double Edged Sword The International Monetary Fund (IMF) has downgraded its 2026 global growth forecast to 3 percent, citing the lingering effects of the energy shock caused by the US Israel war on Iran.
This reduction in growth is hardly surprising, given the significant disruption to global trade caused by the conflict.
The Strait of Hormuz, a critical shipping lane, remains heavily constrained due to ongoing threats of Iranian attacks, leading to a sharp increase in oil prices.