Gita Gopinath Warns: High Oil Prices Threaten 2026 Global Growth, Inflation Spike

• Ex-IMF Chief Gita Gopinath warns that rising oil prices, driven by the Iran conflict, could slow global economic growth in 2026.
• If oil averages $85 per barrel in 2026, global growth could be shaved by 0.3 to 0.4 percentage points.
• Higher energy costs are also projected to raise headline inflation by approximately 60 basis points.
• Before the Iran conflict, 2026 global growth was projected at 3.3% with oil prices assumed at $65 per barrel.
• Middle East tensions are pushing oil markets higher, raising concerns about supply disruptions and economic pressure.