IMF Chief Warns Iran War Could Hit Energy Prices, Growth And Global Markets

IMF Managing Director Kristalina Georgieva has warned that the escalating conflict involving Iran and rising tensions across the Gulf region could have serious consequences for the global economy. Speaking at the Asia in 2050 Conference in Bangkok, Georgieva said the world is entering a period of repeated shocks and heightened uncertainty. She cautioned that if the conflict becomes prolonged, it could impact global energy prices, market sentiment, inflation and economic growth. For many Asian economies in particular, energy security remains a key concern, with financial markets already showing volatility in response to the crisis. Georgieva stressed that uncertainty has effectively become the “new normal” in the global economy. Governments and businesses, she said, must prepare for frequent and unpredictable shocks by building resilient economies, strong financial systems and agile policymaking strategies. The IMF will closely monitor developments and incorporate their economic impact in the upcoming World Economic Outlook.