The International Monetary Fund (IMF) is closely monitoring the impact of the ongoing conflict involving Iran on global inflation and economic output, according to chief spokesperson Julie Kozack.Kozack said the overall economic fallout from the war would depend on its duration, intensity and geographical spread. She noted that, so far, no country has approached the IMF for emergency financial assistance related to the conflict.
The IMF has also not received any formal requests for emergency financing in the wake of the US-Israel war involving Iran, she added.
Highlighting the potential economic risks, Kozack warned that a prolonged conflict could push up energy prices, leading to higher headline inflation globally. She said if oil prices were to remain above $100 per barrel for a year or more, global inflation could rise by up to 2%, while overall economic output could decline by around 1%.The comments underscore growing concerns over the wider economic implications of the conflict, particularly through energy markets.Kozack also flagged that the conflict could hamper growth in Gulf Cooperation Council (GCC) nations, given their exposure to regional instability and energy market volatility.She emphasised that the situation remains fluid, and the IMF continues to assess developments and their potential impact on the global economy.Also read: Global growth to hold steady at 3.3% in 2026, says IMF; India seen growing at 6.4% in FY27The remarks come amid heightened uncertainty in global markets as the conflict continues to evolve, with energy prices and supply chains remaining key areas of concern for policymakers and investors.
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