{"id":205417,"date":"2026-07-14T02:50:00","date_gmt":"2026-07-14T02:50:00","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/205417\/"},"modified":"2026-07-14T02:50:00","modified_gmt":"2026-07-14T02:50:00","slug":"imf-warns-iran-war-energy-shock-is-cooling-global-growth-as-oil-prices-jump","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/205417\/","title":{"rendered":"IMF warns Iran war energy shock is cooling global growth as oil prices jump"},"content":{"rendered":"

WASHINGTON (AP) \u2014 The International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war<\/a>. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence<\/a> and other technologies.<\/p>\n

The IMF now expects the global economy to expand by a sluggish 3% in 2026, down from 3.5% last year and from the 3.1% it had forecast for this year back in April<\/a>. The fund expects worldwide growth to rebound to 3.4% next year.<\/p>\n

Iran responded to U.S. and Israeli attacks Feb. 28 by shutting down the Strait of Hormuz<\/a>, through which a fifth of the world\u2019s crude oil and natural gas passes. Energy prices soared, squeezing businesses and consumers. The IMF now expects oil prices to be up nearly 32% this year and for global consumer prices overall to increase 4.7% in 2026. That would be up from 4.1% in 2025 and would mean that two years of progress against inflation has stalled.<\/p>\n

The IMF forecasts assume that the Strait of Hormuz reopens later this month \u2014 even though U.S. strikes on Iran resumed<\/a> and President Donald Trump declared Wednesday that a ceasefire with Iran was over. They also assume that commerce through the strait returns to normal by next March. <\/p>\n

\u201cThe world economy has weathered the shock from the war better than feared,\u2033 Petya Koeva Brooks, deputy director of the IMF\u2019s research department, told reporters Wednesday. The economic damage from the energy shock has been limited partly because countries could draw on existing oil stockpiles and because oil-exporting countries outside the Persian Gulf stepped up production.<\/p>\n

Countries that produce and export their own energy and that benefit from AI investment are insulated from the war\u2019s economic damage. Among them is the United States. The IMF expects the U.S. economy \u2014 the world\u2019s largest \u2014 to grow a solid 2.3% this year, up from 2.1% in 2025 and unchanged from the April forecast. President Donald Trump\u2019s<\/a> 2025 tax cuts, big gains in productivity and a strong stock market are also giving the American economy a lift. <\/p>\n

The 21 European countries<\/a> that share the euro currency, hit hard by higher energy prices, are collectively forecast to grow just 0.9% this year, down from 1.4% in 2025. <\/p>\n

China<\/a>, the world\u2019s No. 2 economy, is expected to expand 4.6% this year, down from 5%<\/a> in 2025 but a bit faster than the IMF had expected in April. Weighed down by higher energy prices and a property market collapse, the Chinese economy is getting offsetting help from public works spending, a surge in high-tech manufacturing and booming exports.<\/p>\n

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India<\/a> is once again forecast to be the world\u2019s fastest-growing major economy, advancing at a 6.4% clip (down from a sizzling 7.7% last year) on strong consumer spending.<\/p>\n

The IMF is a 191-nation lending organization that works to promote economic growth and financial stability and to reduce global poverty.<\/p>\n

___<\/p>\n

This story has been corrected to show that China\u2019s economy expanded 5% in 2025, not 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 The International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this…\n","protected":false},"author":2,"featured_media":205418,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3],"tags":[328,38,2446,147,2276,197,1004,17575,20902,34,61,196,2222,60144,82],"class_list":["post-205417","post","type-post","status-publish","format-standard","has-post-thumbnail","category-iran","tag-business","tag-donald-trump","tag-economic-indicators","tag-economy","tag-energy-markets","tag-general-news","tag-inflation","tag-information-technology","tag-international-monetary-fund","tag-iran","tag-iran-government","tag-iran-war","tag-oil-and-gas-industry","tag-petya-koeva-brooks","tag-world-news"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116916061719594587","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/205417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=205417"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/205417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/205418"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=205417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=205417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=205417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}