IMF Warns of Global Economic Downturn If War in Iran Lasts

The International Monetary Fund downgraded its growth projection for the year after the war in the Middle East triggered a major oil shock and included the possibility of a downturn if the conflict drags on and energy infrastructure is severely damaged.

Global gross domestic product is now expected to rise 3.1% this year, compared with 3.3% predicted in January, the Washington-based fund said Tuesday in its World Economic Outlook. That’s assuming a relatively short-lived conflict and moderate gain in energy prices this year.