IMF slashes global growth forecasts

The International Monetary Fund's latest World Economic Outlook has delivered a sobering assessment of the global economy, cutting growth forecasts due to the escalating conflict in the Middle East.

The report highlights that the war in Iran has effectively halted global economic momentum, with the United Kingdom expected to suffer the sharpest downgrade among G7 nations.

Persistent disruptions to commodity markets and trade routes are driving fears of a 'stagflationary' environment characterized by high energy costs and slowing industrial output.

If the closure of the Strait of Hormuz continues into next year, the IMF warns that global growth could plunge to rates seen only during the deepest recent recessions.