IMF cuts 2026 world growth forecast, citing Iran war fallout

The IMF cut its 2026 global growth forecast to 3%, down from 3.1% in April, citing the 'lingering effects' of the energy shock caused by the US-Israel war on Iran. Global inflation is expected to reach 4.7% this year before easing to 3.9% in 2027. The downgrade came after the US renewed strikes on Iran following attacks on commercial ships in the Strait of Hormuz.