IMF Warns Prolonged Iran Conflict Could Worsen Global Economy and Push Oil to $125 Per Barrel

The International Monetary Fund (IMF) has warned that a prolonged conflict involving Iran could significantly worsen global economic conditions, especially if it continues until 2027 and pushes oil prices up to $125 per barrel.

In a statement, IMF Managing Director Kristalina Georgieva said that the institution’s earlier projections no longer fully reflect current geopolitical realities.

She noted that the IMF had previously assessed that the conflict involving Iran, the United States, and Israel would mainly lead to slower global economic growth and a modest rise in inflation.

However, she cautioned that if the war persists through 2027 and oil prices remain elevated at around $125 per barrel, the global economic outlook could deteriorate significantly, with broader impacts on growth, inflation, and financial stability worldwide.