IMF Warns of Global Growth Slowdown and Rising Prices Due to Iran Conflict

IMF Managing Director Kristalina Georgieva has issued a formal warning regarding the global economic repercussions of the ongoing conflict in Iran. The institution highlighted that the war is driving energy prices higher while simultaneously slowing global economic growth. According to the IMF, the disruption to global oil supplies is creating a systemic shock that threatens international trade and economic stability. Georgieva emphasized that poor and developing nations are expected to bear the brunt of this economic shock most severely. This outlook reinforces market fears of stagflation, characterized by persistent inflation and stagnant economic activity. Consequently, the IMF's assessment adds bearish pressure on global equities while supporting safe-haven assets like gold XAU/USD.