IMF And IEA Now Projecting Global Recession From Shitstain's War Of Choice, Hormuz Blockade

As the Iran war nears its seventh week, two of the world’s leading finance and energy institutions are forecasting a bleak future for the global economy if the conflict continues much longer. Reports released Tuesday by the International Monetary Fund and International Energy Agency come after a fragile ceasefire announced on April 8 between the U.S. and Iran largely disintegrated and the U.S. enacted a blockade of ships entering or exiting Iranian ports on Monday.

Before the war, the IMF projected growth in the global economy, spurred in part by the artificial intelligence boom and a slight easing in trade policy tensions. “War in the Middle East will overwhelm these underlying forces,” Pierre-Olivier Gourinchas, the International Monetary Fund’s chief economist, wrote in the group’s World Economic Outlook released Tuesday.

Continued attacks on critical energy infrastructure and a prolonged shutdown of the Strait of Hormuz raise the possibility of a global recession and increased inflation, the report noted. “The closure of the Strait of Hormuz and serious damage to critical production facilities in a region central to global hydrocarbon supply could cause an energy crisis on an unprecedented scale,” Gourinchas wrote.

The war resulted in a global oil supply decline of 10 million barrels per day, according to a report by the International Energy Agency, which was also released on Tuesday. Oil prices posted their largest-ever monthly gain in March, the report found. “This is the greatest energy security threat in … history,” Fatih Birol, executive director of the International Energy Agency, said Monday at an event hosted by the Atlantic Council, an international affairs think tank based in Washington.

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https://insideclimatenews.org/news/14042026/iran-war-energy-impacts/