IMF And IEA Now Projecting Global Recession From Shitstain's War Of Choice, Hormuz Blockade [View all]

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As the Iran war nears its seventh week, two of the world’s leading finance and energy institutions are forecasting a bleak future for the global economy if the conflict continues much longer. Reports released Tuesday by the International Monetary Fund and International Energy Agency come after a fragile ceasefire announced on April 8 between the U.S. and Iran largely disintegrated and the U.S. enacted a blockade of ships entering or exiting Iranian ports on Monday.

Before the war, the IMF projected growth in the global economy, spurred in part by the artificial intelligence boom and a slight easing in trade policy tensions. “War in the Middle East will overwhelm these underlying forces,” Pierre-Olivier Gourinchas, the International Monetary Fund’s chief economist, wrote in the group’s World Economic Outlook released Tuesday.

Continued attacks on critical energy infrastructure and a prolonged shutdown of the Strait of Hormuz raise the possibility of a global recession and increased inflation, the report noted. “The closure of the Strait of Hormuz and serious damage to critical production facilities in a region central to global hydrocarbon supply could cause an energy crisis on an unprecedented scale,” Gourinchas wrote.

The war resulted in a global oil supply decline of 10 million barrels per day, according to a report by the International Energy Agency, which was also released on Tuesday. Oil prices posted their largest-ever monthly gain in March, the report found. “This is the greatest energy security threat in … history,” Fatih Birol, executive director of the International Energy Agency, said Monday at an event hosted by the Atlantic Council, an international affairs think tank based in Washington.

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https://insideclimatenews.org/news/14042026/iran-war-energy-impacts/