The economic toll of the Iran war is coming into focus. The OECD has warned that global growth could slow to 2.8% in 2026, and could sink to 2.1% in a scenario where energy-market disruptions and the closure of the Strait of Hormuz persist.
Energy is the channel
Higher oil and gas prices feed inflation, squeeze households and raise costs for businesses worldwide. Central banks from the Fed to the ECB and the Bank of Japan have had to weigh rate decisions against that backdrop.
The case for de-escalation
The analysis underscores why a durable ceasefire matters well beyond the region. Reopening shipping and easing energy prices would remove a significant drag on the global economy — a reminder that diplomacy and growth are closely linked.
This is an analysis piece. Source: OECD via CNBC.