IMF warns of global recession

The IMF's latest economic forecast highlights the severe risks posed by the blockade of the Strait of Hormuz and the spike in global oil prices.

Chief Economist Pierre-Olivier Gourinchas noted that even a near-term resolution would leave a lingering impact on inflation and financial conditions.

The report suggests that prolonged conflict could slow global growth to just 2 percent, hitting emerging markets and energy-dependent economies hardest.

This assessment stands in contrast to the U.S. Treasury's more optimistic projections for domestic growth.