Iran War Derails Global Growth, OECD Warns of Surging Inflation Risks

• The OECD warns that the escalating Iran conflict has erased potential global growth upgrades, disrupting energy markets and fueling inflation.
• Global GDP growth is now projected to slow to 2.9% in 2026, down from 3.3% last year, with earlier potential improvements wiped out.
• Energy prices are sharply rising due to fears of supply bottlenecks, particularly around the Strait of Hormuz, impacting global oil and gas supplies.
• G20 inflation is expected to rise to 4.0% in 2026, 1.2 percentage points higher than previously forecast, before easing to 2.7% in 2027.
• A prolonged conflict could further weaken growth and keep inflation elevated, with a severe scenario potentially reducing global growth by 0.5%.