By Our Correspondent
National News – Global financial authorities have warned that the ongoing Iran war is triggering serious risks to the world economy, with rising energy prices, disrupted shipping routes, and growing fears of inflation-driven slowdown.
The concerns were raised during high-level meetings of finance ministers, central bankers, and global institutions in Washington DC, where policymakers assessed the widening impact of tensions linked to the Strait of Hormuz, one of the world’s most important oil passages.
The conflict has already begun to affect international markets, with oil supply uncertainty pushing up fuel costs and increasing pressure on food production systems.
Economic experts say developing nations are facing the most immediate strain, particularly countries heavily dependent on imported energy and fertilisers.
Reports from global financial institutions indicate that shortages in energy supply chains could persist even after the conflict stabilises, due to delayed shipping and disrupted logistics networks.
The International Monetary Fund described the situation as a “slow-moving shock” that could gradually intensify across global markets.
In response, the World Bank has prepared emergency financial support worth up to $100bn to help vulnerable economies manage rising inflation, food insecurity, and energy shortages.
Officials warn that the ripple effects could extend into agricultural cycles, with fertiliser costs already rising sharply and threatening food output in the coming months.
While some US officials have expressed confidence that the crisis will be short-lived, other global leaders remain cautious.
European and Asian representatives have pointed to increasing energy insecurity and the likelihood of sustained market volatility.
Higher petrol prices and transportation costs are already feeding into inflation concerns across several regions.
Despite temporary improvements in shipping conditions following partial reopening of key routes, uncertainty continues to dominate global economic forecasts.
Analysts warn that continued instability in the Strait of Hormuz could deepen global recession risks if diplomatic efforts fail to produce lasting stability.
