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From Oil to Food, the Iran War Is Squeezing the Global Economy - The ...
AdvertisementSKIP ADVERTISEMENTYou have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.For the Global Economy, ‘All Roads Lead to Higher Prices and Slower Growth’The effects of the war in Iran are squeezing consumers, businesses and governments around the world, raising the prices of many essential goods.Listen · 4:05 min A fertilizer plant outside Lagos, Nigeria. Fertilizer shortages driven by the fighting in the Middle East, where crucial inputs are produced, can lead to poorer harvests and higher food prices around the world.Credit...Taiwo Aina for The New York TimesBy Patricia CohenPatricia Cohen is a global economics correspondent based in London.March 31, 2026The economic fallout from the war in Iran, now in its fifth week, is squeezing consumers and businesses around the globe, raising the price of essentials like food and fuel.“Although the war could shape the global economy in different ways, all roads lead to higher prices and slower growth,” top economists from the International Monetary Fund wrote this week.On Tuesday, signs of strain could be seen in new projections of a sharp rise in poverty across the Arab world, a big jump in inflation in Europe and fresh highs for U.S. gasoline prices.The effects are especially onerous for poor countries, which have the fewest resources. Countries in Africa, South Asia, Latin America and parts of the Middle East that import most of their energy are especially hard-pressed to afford skyrocketing costs.For these economies, the effect is like “a large, sudden tax on income,” I.M.F. economists explained.Yet even if countries can come up with the funds, supplies of oil, gas and many other crucial commodities may not be available because of Iran’s effective blockade of the Strait of Hormuz, a key shipping route, as well as damage to energy infrastructure across the Gulf region.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.AdvertisementSKIP ADVERTISEMENT
Iran war 'shock' is dimming outlook for many economies, IMF says
People inspect damage to a residential building after it was hit by a strike, amid the U.S.-Israeli conflict with Iran, in Tehran, Iran, March 30, 2026. Majid Asgaripour/WANA (West Asia News... Purchase Licensing Rights, opens new tab Read moreSummaryCompanies'All roads lead to higher prices and slower growth,' IMF saysBlog cites asymmetric shock, warns of higher inflation worldwideLow-income countries may need external supportWASHINGTON, March 30 (Reuters) - The war in the Middle East has caused serious disruption to the economies of frontline countries, and is dimming the outlook for many economies that had just started to recover from previous crises, the International Monetary Fund warned on Monday.In a blog published by the global lender's top economists, the IMF said the war launched by U.S. and Israeli strikes against Iran on February 28 was causing a global, but asymmetric shock and leading to tighter financial conditions. Sign up here.Iran's closure of the Strait of Hormuz and damage to regional infrastructure had caused the largest disruption to the global oil market in history, given that 25%-30% of global oil and 20% of liquefied natural gas normally passed through the narrow waterway, according to the International Energy Agency.Oil prices on Monday were set for a record monthly rise.The war's impact would depend on how long it lasts, how far it spreads and how much damage it inflicts on infrastructure and supply chains, the IMF said, urging countries to carefully calibrate any measures to manage the shock.The IMF was also supporting member countries with policy advice and financial assistance, where needed and in coordination with the international community, the fund said.The IMF statement came as finance leaders from the Group of Seven economic powers said they were ready to take "all necessary measures" to safeguard energy market stability and limit broader economic spillovers from recent volatility.The International Energy Agency's 32 members agreed earlier this month to release a record 400 million barrels of oil from strategic stockpiles to combat a spike in global crude prices.POOREST COUNTRIES AT RISK OF FOOD INSECURITYThe IMF blog said low-income countries were at particular risk of food insecurity, given higher food and fertilizer prices, and might need more external support at a time when many advanced economies were scaling back their international assistance."Although the war could shape the global economy in different...
Insiders profit as Iran war pressure points build on global economy
Global stock markets, which for the past month have been remarkably restrained as the Middle East crisis unfolded, have begun to wobble.
Present conflict in the Middle East: Risks and opportunities for South ...
For South Asia, the current tensions are not distant geopolitical events, they direct impact on overall economies as major share of energy comes from the oil. Past experience shows how volatile oil prices can trigger instability in Sri Lanka and countries such as Maldives and Pakistan have also faced economic pressure.
