The International Monetary Fund (IMF) has warned that the ongoing Iran war could leave long-lasting damage on the global economy, even if the conflict ends soon.
IMF Managing Director Kristalina Georgieva said the crisis has already disrupted global economic stability and may permanently affect growth. She cautioned that the world should not expect a quick return to normal, as the effects of the war are likely to continue for years.
One of the biggest concerns is the impact on energy supplies. The conflict has disrupted key oil and gas routes, especially around the Strait of Hormuz, a critical channel for global fuel shipments. This has pushed up energy prices, adding to inflation pressures in many countries.
The rising cost of fuel is also affecting food prices and transportation, making daily life more expensive, especially in poorer nations that depend heavily on imports. According to the IMF, these countries are the most vulnerable and could face worsening economic conditions and increased food insecurity.
The war has also shaken investor confidence and disrupted supply chains, slowing down global trade and business activity. As a result, the IMF is expected to lower its global growth forecasts in the coming months.
Georgieva noted that many countries are already seeking financial help to cope with the situation. The IMF estimates that demand for support could range between $20 billion and $50 billion as nations try to manage rising costs and economic uncertainty.
She also warned against protectionist measures like export bans, saying such steps could make the crisis worse. Instead, she urged countries to work together and focus on supporting vulnerable populations.