IMF warns Iran war is leading to higher prices and slower growth

IMF Managing Director Kristalina Georgieva said the Iran war has increased the risk of higher inflation and weaker global growth, prompting the IMF to prepare cuts to its growth forecasts; Georgieva will address the situation at next week’s IMF–World Bank spring meetings.

IMF Managing Director Kristalina Georgieva warned that the Iran war is pushing the global economy toward higher prices and weaker growth. She said the Fund is preparing to cut its near-term growth forecasts after earlier expecting a small upgrade for 2026–27. The IMF reported that the conflict has tightened energy supplies and disrupted other critical supply chains. Georgieva noted that poorer countries with limited reserves will be most vulnerable. What is known: - Georgieva said the situation points to higher prices and weaker growth, and the IMF plans to lower its forecasts. - The IMF reported an approximate 13% drop in global oil supply and identified damage to other key supply chains. - Shipping through the Gulf has only partly resumed and remains well below pre-war volumes, according to market data cited by the IMF. - Georgieva is scheduled to speak on the issue at next week’s IMF–World Bank spring meetings. Summary: The IMF says the Iran war has raised the risk of higher inflation and slower global growth and will prompt revisions to the Fund’s outlook. Officials highlighted tightened energy supplies and strained supply chains, with poorer countries likely to face the largest impacts. Georgieva will present on the situation at the upcoming spring meetings, and the IMF’s revised forecasts are expected to be published in that context.