Middle East Conflict Could Hit Global Economy Hard

World Bank President Ajay Banga warns the Middle East conflict may lower global growth by 0.3% to 1% and drive inflation by 0.9%. A fragile ceasefire is in place, but its failure could exacerbate oil prices and disrupt energy resources, impacting global economies.

World Bank President Ajay Banga has cautioned that the Middle East conflict could significantly affect the global economy, predicting a setback to global growth between 0.3% and 1% depending on ceasefire outcomes.

The war continues to disrupt vital supplies such as oil and gas, with prices already soaring by 50%. Banga expressed concerns about inflation rising by up to 0.9%, further impacting vulnerable economies.

A tenuous ceasefire led by U.S. President Donald Trump faces uncertainty as strikes persist. Ongoing U.S.-Iran negotiations are critical in determining the global economic implications.

(With inputs from agencies.)