IMF warns of global recession

In its latest economic assessment, the IMF projected that global growth will slow to 3.1 percent as the conflict in the Middle East continues to escalate.

Chief Economist Pierre-Olivier Gourinchas warned that a prolonged closure of the Strait of Hormuz could push oil prices above $110 a barrel, severely impacting energy-dependent nations.

The report highlights that the United Kingdom and several European economies are particularly vulnerable to these inflationary shocks.

Central banks may be forced to maintain high interest rates longer than anticipated to combat the rising cost of energy and food.