IMF warns global economy faces recession risk from Middle East war and oil shock

The International Monetary Fund (IMF) has issued a series of warnings about the global economy, highlighting the risk of a worldwide recession. The main concern is a potential oil supply shortfall and price shock if the conflict involving Iran escalates, which could severely slow down growth.

The IMF has already lowered its global growth outlook and specifically cut its forecast for the Eurozone. It is advising countries to avoid broad fuel subsidies to cope with the energy price shock and instead focus on building financial buffers, like recapitalizing banks, to withstand the coming turbulence.