IMF Chief Says Oil Shock Tests a World With Little Fiscal Buffer

The International Monetary Fund said that the conflict in the Middle East is a major supply shock that will test the resilience of a world with limited scope for fiscal support, even as US and Iran have negotiated a two-week ceasefire.

Given the uncertainties around the Middle East conflict, the Washington-based fund will publish a range of scenarios in its World Economic Outlook report next week. But even in the most hopeful case, the IMF is cutting its growth forecasts, managing director Kristalina Georgieva said.