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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIMF Managing Director Kristalina Georgieva has warned that a prolonged war in Iran could trigger a global recession, urging market participants to exercise greater caution in this era of uncertainty. The Fund previously cut its 2026 global GDP growth forecast to 3.1%, noting that growth could drop to 2.5% if geopolitical tensions persist and oil prices remain elevated. While current projections assume oil prices will stabilize around $82 per barrel, at least a dozen countries are expected to seek new financial assistance. Despite rising fiscal pressures, Georgieva clarified that the IMF is not currently discussing an expansion of Egypt’s $8 billion program. Analysts suggest this environment continues to support safe-haven assets like Gold (XAU/USD) and the US Dollar (DXY) as the threat of conflict weighs on global market stability.